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The  Panama  Canal 


and  the 


Pacific  Coast 


William  B.  Dana 


Publishers 
Commercial  and  Financial  Chronicle 
Chronicle  Building,  New  York 


THE  LONDON  ECONOMIST 


Founded  in  1843  by  the  Right  Honourable  James  Wilson 
and  afterward  edited  until  his  death  by  Walter  Bagehot. 


Known  throughout  the  world  as  an  independent,    critical,    impartial    and 

trustworthy  authority  on 

THE  LONDON  MONEY  MARKET  AND  STOCK  EXCHANGE. 


It  contains  a  weekly  survey  of  all  the  London   Markets,  with  valuable 

lists  of  stocks  and  bonds,  Prices  Current,  and 

also  expert  reports  on 

WOOLEN.  COTTON.  SILK.  JUTE  AND  OTHER  TEXTILE  INDUSTRIES, 
IRON.  STEEL.  LEATHER.  COFFEE.  SUGAR.  ETC..  ETC. 


Its  Foreign  Correspondence  is  unique,  as  are  its  INDEX  NUMBERS  and 
much  of  its  statistical  information. 


ANNUAL  SUBSCRIPTION  FOR  THE  UNITED  STATES 
£2  4  0.  OR  $10  70 

Subscriptions  may  be  sent  to  the  offices  of  The  Journal  of  Commerce,  32 

Broadway,  New  York   (where  single  copies  can  also  be  purchased), 

or  direct  to  The  Economist  office,  3  Arundel  Street,  London,  W.C. 


ADVERTISING 

Owing  to  its  circulation  among  Bankers  and  Merchants  of  all  Nations  in  all 

parts  of  the  World,  The  Economist  is  a  valuable  medium  for 

many  classes  of  advertisements. 


Kennett  Cowan  &  Company 


INVESTMENT  BONDS 


TTTE  Maintain  an  efficient  Statistical 
"  "  Department  and  invite  European 
Brokers  and  Bankers  desiring  informa- 
tion or  quotations  on  any  securities 
which  have  a  market  on  this  side  to 
avail  themselves  of  this  service. 


THE  ROOKERY 
CHICAGO 


55  Wall  Street  Ford  Building 

New  York  Detroit 


CABLE  ADDRESS:  KASECO  CHICAGO 
CODES    USED:    HARTFIELD,    LIEBER,  WESTERN  UNION 


Attention  is  called  to  the 
announcement  on  page  n 


siiiiiiiin in. ; liiiiiiiiB 


'URING    an   uninterrupted   existence   of 

more  tKan  Kalf  a  century),  Hl\e  MercKants  Loan 
and  Trust  Company— trie  Oldest  Bank  in  Ckicago 
— has  developed  facilities  and    resources   which 

enable  it  to  offer  liberal  accommodations  and  unexcelled 

service  in  all  branches  of  banking. 


Transacting  me  largest  commercial  business 
and  having  the  greatest  volume  of  bank 
deposits  of  any  State  Bank  or  Trust 
Company  in  the  West,  mis  Bank  employs 
the  most  approved,  modern  methods  to 
insure  fhe  expeditious  handling  of  the 
accounts  of  its  city  and  out-of-town 
depositors.  A  well-organized  Foreign 
Department,  with  extensive  connections 
throughout  fhe  world,  enables  it  to  meet  fhe 
foreign  banking  needs  of  every)  customer. 

CThrough  its  Trust  Department,  fhis  Bank 
is  qualified  by  law  to  assume  fhe  care  and 
management  of  estates  and  to  act  in  any 
trust  capacity.    In  addition  to  fhe    many 


other  safeguards  provided,  this  Bank  also 
maintains,  -vCitK  fhe  State  of  Illinois,  a 
special  deposit  of  half  a  million  dollars 
to  guarantee  the  faithful  performance  of 
its  duties. 

Investors  purchasing  fhe  high  grade  bonds 
and  farm  loans  sold  by  this  Bank,  are 
recognizing,  more  and  more,  the  desira- 
bility' and  dependableness  of  these  offerings. 

On  Savings  Deposits,  fhis  Bank  pays 
3%  interest,  compounded  twice  each  year. 
Large  capital  and  surplus,  strong  manage- 
ment, and  a  half  century*  of  safe  banking 
assure  absolute  security).  Satisfactory* 
facilities  provided  for   banking  by    mail. 


THE  CHARACTER  OF  THIS  BANK  IS  REFLECTED  IN  THE 
PERSONNEL  OF  ITS  BOARD  OF  DIRECTORS 


FRANK  H.  ARMSTRONG 

President  Reid,  Murdoch  &  Compart}? 

ENOS  M.  BARTON 

Chairman  Board  Directors,  Western  Electric  Company 

CLARENCE  A.  BURLEY 

Attorney  and  Capitalist 

HENRY  P.  CROWELL 

President  Quaker  Oats  Company* 

WILLIAM  A.  GARDNER 

President  Chicago  &  Northwestern  Railway  Company* 

ELBERT  H.  GARY 

Chairman  Board  Directors  United  States  Steel  Corp'n 

EDMUND  D.  HULBERT 

Vice-President 

CHAUNCEY  KEEP 

Trustee  Marshall  Field  Estate 


CYRUS  H.  McCORMICK 

President  International  Harvester  Company* 

SEYMOUR  MORRIS 

Trustee  L.  Z.  Leiter  Estate 

JOHN  S.  RUNNELLS 

President  Pullman  Company 

EDWARD  L.  RYERSON 

Chairman  Board  Directors  Joseph  T.  Ryerson  &  Son 

JOHN  G.  SHEDD 

President  Marshall  Field  &  Company 

ORSON  SMITH 

President 

ALBERT  A.  SPRAGUE,  II. 

Vice-President  Sprague  Warner  &  Company 

MOSES  J.  WENTWORTH 

Capitalist 


We  Invite  Inquiries  in  Regard  to  Any  Feature  of  Our  Service 


ORSON  SMITH 

President 

EDMUND  D.  HULBERT 

Vice-President 

FRANK  G.  NELSON     ', 

Vice-President 

JOHN  E.  BLUNT,  Jr. 

Vice-President 


P.  C.  PETERSON 


Cashie 


C.  E.  ESTES 


Assistant  Cashier 


Capital  and  Surplus 

$10,000,000 


Merchant^ 
Loan 


!^ 


^Trust 
Company 


Established 
in  the  Year 

1857 


JOHN  J.  GEDDES 

Assistant  Cashier 

LEON  L.  LOEHR 

Secretary  and  Trust  Officer 

A.  LEONARD  JOHNSON 

Assistant  Secretary) 

F.  W.  THOMPSON 

Mgr.  Farm  Loan  Department 

H.  G.  P.  DEANS 

Mgr.  Foreign  Department 

G.  F.  HARDIE 

Mgr.  Bond  Department 


1  1  2  West  Adams  Street 

CHICAGO 


Attention  is  called  to  the 
announcement  on  page  II 


PEACE 


LYON   GARY  &  COMPANY 

208  SOUTH  LASALLE  STREET 

CHICAGO 


SPECIALIZE 

In   Timber    Securities 


BUY  WHOLE   ISSUES   OF   BONDS    SECURED   BY   FIRST 
MORTGAGE   ON    TIMBER    LANDS. 

SELL  CAREFULLY  SELECTED  TIMBER  BONDS  TO  INVESTORS 
AT  PRICES  TO  YIELD 


6%  Net 


Attention  is  called  to  the 
announcement  on  page  n 


THE  ROOSEVELT  DAM,  SALT  RIVER  VALLEY,  ARIZONA.     A  GOVERNMENT  RECLAMATION  PROJECT  IRRIGATING, 

AT  PRESENT,   152,000  ACRES. 


W.  G.  Souders  &  Company 

Investment  Bankers 
208   South  La  Salle   St.,  CHICAGO 

High  Grade  Investments 

Secured     by      first     mo  rt  gage      bonds      of 

Steam  Railroads  Water  Powers 

Electric  Railroads  Industrials 

Public  Service  Corporations 

We  invite  inquiries  from  Bankers  and  Dealers  who  are  in  the  market  for 
large  blocks  or  entire  issues. 

In  investigating  these  properties  we  employ  engineers  of  recognized  ability, 
in  whom  we  have  absolute  confidence,  and  auditors  whose  reports  are 
universally  accepted. 


Attention   is  called   to   the 
announcement  on  page  n 


IN  THE  FINANCIAL  DISTRICT  OF  SAN  FRANCISCO. 


Mercantile  National  Bank 
of  San  Francisco 


Capital  and  Surplus 


Three  Million  Dollars 


OFFICERS 

Henry  T.  Scott         .       .         Chairman  of  the  Board 

John  D.  McKee President 

Frank  G.  Drum  ....      Vice-President 

O.  Ellinghouse Cashier 

W.  F.  Berry       ....  Assistant  Cashier 

F.  O.  Cooke  ....      Assistant  Cashier 

Thomas  M.  Paterson        .       .  Assistant  Cashier 


William  Babcock 
H.  C.  Breeden 
Warren  D.  Clark 
W.  F.  Detert 
Frank  G.  Drum 
J.  D.  Grant 
Charles  E.  Green 


DIRECTORS 

Joseph  Hyman 
Alexander  Hamilton 
John  D.  McKee 
Ogden  Mills 
R.  H.  Pease 
R.  D.  Robbins 
Henry  T.  Scott 
M.  S.  Wilson 


A  General  Banking  Business  Transacted 

Accounts  of  Banks,  Corporations,  Firms  and  individuals 
solicited  and  facilities  offered  for  the  transaction  of  all  branches 
of  domestic  and  foreign  banking;.  Collections  given  prompt  and 
careful  attention. 

Correspondence  is  invited 


MercantileTrust  Company 
of  San  Francisco 

(Owned  by  the  Stockholders  of  Mercantile  National  Bank  of 
San  Francisco  and  under  same  policy  of  management.) 

Capital One  Million  Dollars 

R.  M.  SIMS Trust  Officer 

PAUL  McDONALD,  Assistant  Trust  Officer 

A  General   Trust   Business   Transacted 

Authorized  to  act  as  executor,  trustee,  administrator  or 
guardian,  and  in  all  fiduciary  capacities,  on  behalf  of  individuals, 
institutions  or  corporations. 

Acts  as  Trustee  under  mortgages  and  trust  deeds  made  by 
individuals  or  corporations. 

Registrar  and  transfer  agent  of  bonds  and  stocks.  Depositary 
under  plans  of  reorganization  or  other  agreements. 

Documents  and  securities  held  in  escrow.  Securities  held  on 
deposit  for  safe  keeping. 

Financial  agent  for  non-residents. 


Safe  Deposit  Department 

J.  H.  CLENDENNING,  Manager 

Safe  Deposit  Vaults  in  a  Safe  Deposit  Building 

Every  convenience  for  use  of  clients  or  visitors 
Inspection  cordially  invited 

464  California  Street,      San  Francisco,  California 


Attention  is  called  to  the 
announcement  on  page  ll 


Illinois  Trust  and  Savings  Bank 


La  Salle  and  Jackson  Streets 
CHICAGO 

Capital,  Surplus  and  Undivided  Profits 
$15,500,000.00 


Pays  Interest  on  Time  Deposits,  Current  and  Reserve 
Accounts.  Deals  in  Investment  Securities  and  Foreign 
Exchange.      Transacts  a  General  Trust  Business 

DIRECTORS 


Henry  A.  Blair 
Stanley  Field 
Frederick  T.  Haskell 
James  J.  Hill 
Charles  H.  Hulburd 


James  C.   Hutchins 
Chauncey  Keep 
John  J.  Mitchell 
John  G.  Shedd 
Frank  D.  Stout 


OFFICERS 


John  J.  Mitchell  .  .  .  President 
Frederick  T.  Haskell .  Vice-President 
Chauncey  Keep  .  .  Vice-President 
Henry  A.  Blair     .     .  Vice-President 

J.  I.  Cooper Cashier 

F.  I.  Cooper    .    .    .    Asst.  Cashier 


E.  S.  Layman    .    . 
J.  W.  Knight  .    . 
David  Grant      .    . 
William  H.  Henkle 

F.  M.  Sills    .    .    . 
F.  F.  Taylor    .     . 


.  Asst.  Cashier 
Asst.  Cashier 

.  Asst.  Cashier 
.    .  Secretary 

Asst.  Secretary 

Asst.  Secretary 


W.  E.  Colt,  Jr.,  Manager  Bond  Department 


Illinois  Trust  Safety  Deposit  Co.,  Deposit  Vaults 

The  strongest  and  most  spacious  in  the  city 

A  safe  place  at  small  cost  to  keep  your  securities,  documents  and  other  valuable  property 


Attention  is  called  to  the 
announcement  on  page  11 


Condensed  Facts 

regarding  the  largest 

Farm  Machinery  Manufacturer 

west  of  the  Missouri  River 


Established  1869;  incorporated  1892. 

Two  factories,  1,000  employes. 

Stockton  factory  occupies  seven  city  blocks. 

Self-propelled  harvesters — two  models — 14  to  34-foot  cut. 

Caterpillar  tractors  made  in  the  following-  sizes — 18,  30,  60  and  75  horsepower. 

Horse-drawn  and  gas  harvesters — six  models — 10  to  34-foot  cut — capacity  15 
to  75  acres  per  day,  cut,  threshed  and  sacked. 

Other  products — disc  and  moldboard  plows,  disc  and  tooth  harrows,  sciap- 
ers,  special  machinery,  supplies  and  lubricants. 

Twelve  American  branches  and  district  sales  agents — fourteen  foreign  agents 
covering  every  great  agricultural  district. 

Holt  machines  harvest  three-fourths  of  all  grain  grown  on  Pacific  Coast — 
90  per  cent  of  California's  crop.    Over  6,000  in  use. 

Nearly  2,000  Caterpillars  used  for  plowing,  discing,  harrowing,  seeding,  cul- 
tivating, harvesting,  threshing,  hauling,  filling  silos,  baling  hay,  making  roads, 
digging  ditches,  building  levees,  pumping,  grinding  feed,  drilling  wells,  pull- 
ing stumps,  lifting  beets,  etc. 

Caterpillars  used  in  the  following  countries,  besides  practically  every  state  in 
the  Union ;  Australia,  Hawaii,  Philippines,  Canada,  Mexico,  Argentine,  Alas- 
ka, Belgium,  Germany,  Austria,  Hungary,  Spain,  Russia,  Algeria,  South 
Africa,  Patagonia,  Bolivia,  Cuba,  Guatemala. 

International  contests  won  by  Caterpillar — Buenos  Aires,  1911,  $3,000  prize; 
Magdalene,  S.  A.,  1913,  $15,000  prize;  Hungary,  1913,  32  contestants;  St.  Pet- 
ersburg, 1913,  9  contestants;  Kieff,  Russia,  1913;  Tunis,  Algeria,  1913;  Com- 
peigne,  France,  1913;  Tunis,  Algeria,  1914,  18  contestants  (foreign  press  ad- 
vices). 

Caterpillars  used  by  farmers;  contractors;  highway  commissions;  counties; 
townships  and  municipalities ;  armies  and  railways ;  lumbermen ;  drainage  and 
reclamation  organizations ;  agricultural  colleges ;  sugar  companies,  and  others. 


You  are  cordially  invited  to  look  over  our  plant  at  any  time. 
We'll  be  busy — we  always  are — but  can  find  time  to  shozv  friends 
the  inside  of  one  of  Stockton's  most  widely  known  industries. 


The  Holt  Manufacturing  Company 

Incorporated 

Stockton,  California,  U.  S.  A. 

New  York,  N.  Y. 
San  Francisco,  Cal.  Peoria,  111.  Portland,  Ore. 

Los  Angeles,  Cal.  Spokane,  Wash.  Calgary,  Alberta 


Attention  is  called   to  the 
announcement  on  page  II 


ORANGES    AND    SNOW    IN    CALIFORNIA. 


Delivery    outfits    at    one    of    the    San    Francisco    Plants    of   National    Ice 
and   Cold   Storage   Company   of   Califurnia. 


Icing  cars  at  one  of  the   San   Joaquin   Valley   Plants  of  National   Ic 
and  Cold  Storage  Company  of  California. 


Express  cars  waiting  to  be  iced  at  one  of  the  plants  of  National  Ice  and  Cold  Storage  Company  of  California. 
FACTORIES — San  Francisco,  Oakland,  Stockton,  San  Jose,  Fresno,  Santa  Rosa,  Sonora,  Los  Angeles,  Riverside,  San  Bernardino, 
Berkeley,  Sacramento,  Marysville,  Merced,  Red  Bluff,  Bakersfield,  Petaluma,  Vallejo,  Watsonville.  Natural  Ice  Works  at  Floris- 
ton,  Iceland  and   Polaris,  Cal. 

NATIONAL  ICE  AND  COLD  STORAGE  CO. 

Postal  Telegraph  Building  OF  CALIFORNIA  SAN  FRANCISCO 


Attention  is  called  to  the 
announcement  on  page  n 


PANORAMA  OF  LOS  ANGELES. 


OFFICERS 

J.   M.   ELLIOTT President  E.   S.   PAULY Assistant  Cashier 

STODDARD    JESS Vice-President  A.    C.    WAY Assistant  Cashier 

JOHN   P    BURKE Vice-President  E.    W.    COE Assistant  Cashier 

JOHN    S.    CRAVENS Vice-President  A.    B.    JONES Assistant  Cashier 

W     T     S.    HAMMOND Cashier  W.  C.  BRYAN Assistant  to  the  Cashier 

W.    H.   LUTZ Auditor 

DIKKCTORS 


JOHN   P.  BURKE Vice-President 

JOHN    S.    CRAVENS Vice-President 

J.  C.   DRAKE.    President  Los  Angeles  Trust  and   Savings   Bank 

J.    M.    ELLIOTT President 

FRANK    P.    FLINT Attorney 

M.  H.  FLINT.  .  .  Vice-Pres.  Los  Angeles  Trust  and   Savings  Bank 
C.    W.    GATES Capitalist 


E.  Q.  STORY. .  .President  California  Fruit  Growers'  Exchange 


W.   T.    S.    HAMMOND Cashier 

STODDARD    JESS Vice-President 

H.  JEVNE H.  Jevne  Co. 

J.    O.    KOEPFLI Bishop   &   Co. 

DAN    MURPHY Capitalist 

E.  J.    MARSHALL.  ..Vice-President   Torrance.    Marshall   &   Co. 
IOHN   B.   MILLER.  .President  Southern   California  Edison   Co. 


Attention   is  called   to  the 
announcement  on  page  11 


Continental  and  Commercial 
National  Bank  of  Chicago 

Capital,  Surplus  and  Undivided  Profits.  $32,000,000 
Invites  your  patronage 


John  C.  Craft, 
Edward  A.  Cudahy, 


DIRECTORS 


J.  Ogden  Armour, 

Alexander  F.  Banks, 

John  C.   Black,  Robert  J.  Dunham, 

Charles  T.  Boynton,  Albert  J.  Earling, 

Eugene  J.   Buff.ngton,  Bernard  A.  Eckhart, 

William  J.  Chalmers,  Francis  A.  Hardy, 

Alfred  Cowles,  Frank  Hibbard, 


Edward  Hines, 
Hale  Holden, 
William  V.   Kelley, 
Edward  S.  Lacey, 
Richard  C.  Lake, 
David  R.  Lewis, 
Robert  T.  Lincoln, 


Eames  MacVeagh, 
William  H.  McDoel, 
Robert  H.  McElwee, 
D.  R.  McLennan, 
Joy  Morton, 
Alfred  H.   Mulliken, 
Herbert  F.   Perkins, 


Edwin  A.  Potter, 
William  H.  Rehm, 
George  M.  Reynolds, 
Edward   P.   Ripley, 
Alex  Robertson, 
Edward  P.   Russell, 
James  W.  Stevens, 


Charles  H.  Thorne, 
Ralph  Van  Vechten, 
Herman  Waldeck, 
Charles  H.   Weaver, 
Fred  E.   Weyerhaeuser, 
Milton  H.  Wilson. 


The  Continental  and 
Commercial  National 
Bank  transacts  a  com- 
mercial banking  business 
and  has  every  modern 
banking  facility  with  each 
department  under  official 
supervision.  Patrons  are 
offered  courteous,  effi- 
cient and  prompt  service. 


The  Continental  and 
Commercial  Trust  and 
Savings  Bank  receives 
checking  accounts,  of- 
fers 3%  on  Savings  Ac- 
counts, and  acts  as 
Executor  of  Estates, 
Trustee,  Administrator 
or  Guardian,  Transfer 
Agent,  Registrar  and 
Trustee  under  Mort- 
gages. It  also  conducts 
a  general  bond  business. 


OUR  NEW  HOME 


Continental  and  Commercial 
Trust  and  Savings  Bank 

Chicago,  Illinois 

Capital,  Surplus  and  Undivided  Profits,  $5,000,000 

Write  to  the  BOND  DEPARTMENT  for  list  of 

MUNICIPAL,    RAILROAD   OR    CORPORATION   BONDS 

recommended  for  investment.     All  bonds  offered  have  been  first  purchased  after  a  thorough 

investigation  through  many  of  the  numerous  channels  open  to  this  institution. 

On  request  your  name  will  be  placed  on  our  mailing  list  so  that  you  will  receive  our  circulars  as  issued 

The  Hibernian  Banking  Association 

Chicago,  Illinois 

Capital,  Surplus  and  Undivided  Profits,  $3,000,000 

The  Capital  Stock  of  the  Continental  and  Commercial  Trust  and  Savings  Bank  and  the  Hibernian  Rankin? 
Association  are  owned  by  the  Stockholders  of  the  Continental  and  Commercial  National  Bank  of  Chicago. 

Combined  Deposits  of  these  Banks,  $250,000,000 


10 


Attention  is  called   to   the 
announcement  on  page  II 


The  Panama  Canal 

and  the 

Pacific  Coast 

Originally  issued  as  a  supplement   of 
The  Commercial  and  Financial  Chronicle 

New  York,  November  28,  1914 

and,  by  special  arrangement  with  the  publishers,  simultaneously  issued, 

in  the  same  manner,  by  THE  ECONOMIST,  of  London,  En£., 

and  THE  ECONOMIST,  of  Chicago. 

Compiled  and  Edited  by  Geo.  M.  Shepherd 


Foreword 


THE  purpose  of  the  publishers  in  offering  this  edition  is  to  provide  an  authentic  and 
reliable  work  of  reference  on  the  commercial  and  financial  conditions  as  existing  in 
the  Pacific  Coast  territory  of  the  United  States  at  the  time  of  the  opening  of  the  Panama 
Canal. 

The  publishers  have  endeavored  to  make  the  advertising  pages  of  this  edition  as  valu- 
able to  the  reader  for  purposes  of  reference  as  the  editorial  and  special  articles,  and 
statistical  tables. 

With  this  end  in  view  they  have  exercised  careful  scrutiny  and  discrimination  as  to  the 
character  of  the  advertising  appearing  herein,  without  regard  to  a  possible  sacrifice  in  its 
volume. 

Representatives  of  the  publishers  have  necessarily  spent  much  time  in  the  Pacific  Coast 
territory  in  connection  with  the  work  entailed  by  the  preparation  and  publication  of  this 
issue.  They  have  given  painstaking  attention  to  inquiries  from  the  most  reliable  sources  of 
information  available  as  to  the  responsibility  of  prospective  advertisers.  Advertising  for 
this  edition  has  been  solicited  only  from  those  whose  standing  and  reputation  careful  in- 
vestigation has  revealed  to  be  of  the  best. 

The  publishers,  therefore,  feel  justified  in  stating  that,  to  the  best  of  their  information 
and  belief,  the  advertising  pages  of  this  issue  may  be  relied  upon  by  the  reader  both  as  to 
the  statements  made  therein  and  the  responsibility  of  the  advertisers. 


William  B.  Dana  Company 

Publishers 

Commercial  and  Financial  Chronicle 

Chronicle  Building,  New  York 

CwiighlrJ  in  1914.  iiilllhl  U  Act  »l  Canute.,   by  WILLIAM   B    DANA  COMPANY,  in  ollice  ol  Libr.rUn  ol  Congre...  Wi.kinglnn.  D.  C. 


11 


THE    GOLDEN    GATE. 


W.  R.  GRACE  &  CO. 


Lima 
Callao 


Arequippa 
La  Paz 


San  Francisco 
New  Orleans 


NEW  YORK 


Seattle  Valparaiso  Concepcion 

Santiago        Portland  Valdivia 


GRACE  BROS.  &  CO.,  LTD.,  LONDON 

Agents  in  all  ports  on  West  Coast  of  South  America 

Letters  of  Credit  Foreign  Exchange  Cable  Transfers 


EXPORTS 


IMPORTS 


Atlantic  &  Pacific  SS  "Santa  Clara"  in  Panama  Canal 
The  first  steamer  to  pass  through  the  Pacific  locks 


SHIPPING 


General  Agents  For 


NEW  YORK  &  PACIFIC  S.  S.  CO. 

Regular  Service  From 

NEW  YORK  and  SAN  FRANCISCO 

To  All  West  Coast  Ports  of  South  America 


ATLANTIC  &  PACIFIC  S.  S.  CO. 

Via  Panama  Canal  Between 

NEW  YORK  and  SAN  FRANCISCO 

San  Pedro  -  Portland  -  Seattle  -  Tacoma 


12 


Attention  is  called   to   the 
announcement  on  page  II 


A  STAND  OK  FINE  SUGAR  AND   WHITE   PINK  IN  THE  SHASTA  DISTRICT,  CALIFORNIA. 


WILLIAM  R.  STAATS  COMPANY 

(ESTABLISHED  1887) 

Pacific  Coast  Securities 


Government,  State,  County,  City, 
School,  Railway,      ~~) 


Public  Service  ::   DOHQS 


B 


Also  FIRST  MORTGAGE  BONDS  of  Cor- 
porations  owning  extensive  income  producing 
assets  including  FARM  and  TIMBER  LANDS 


Order*  executed  for  the  purchase  and  sale  of  listed  securities. 


Vice-President 

JOHN  EARLE  JARDINE 

10S  West  Fourth  St.,      Los  Angeles 


President 

WILLIAM  R.  STAATS 

Pasadena 


Vice-President 
JOHN  W.  EDMINSON 

405  Montgomery  St.,  San  Francisco 


Vice-President 

FRANK  C.  MONROE 

65  South  Raymond  Ave.,    Pasadena 


CHICAUO  OFFICE 

456  First   National   Bank   Building 

DUNCAN  J.  HALL,  Manager 


Attention  is  called   to  the 
announcement  oh  page  n 


fti  dfiftO 


RETAIL   DISTRICT   OF   SEATTLE  AND  THE   OLYMPIC   MOUNTAINS. 


Expecting  to  receive  a  fair  compensation  for  its  services,  and 
without  pretense    of    giving    something    for    nothing. 

The    National   Bank 

OF    THE 

REPUBLIC 

OF        CHICAGO 

tenders  its  offices  to  those  who  appreciate  careful  and  prompt 
service  and  intelligent  attention  to  details,  helieving  that  with  its 
large  list  of  correspondents  and  desirahle  connections  at  the  leading 
commercial  centers,  it  can  he  of  real  service  to  the  husiness  public. 


JOHN  A.  LYNCH,  President 

ROBERT  M.  McKINNEY,  Cashier 

JAMES  M.  HURST,  Assistant  Cashier 

THOS.  D.  ALLIN,  Assistant  Cashier 

WM.  G.  LEISENRING,  Mgr.  Bond  Department 


WILLIAM  T.  FENTON,  Vice-President 

O.  H.  SWAN,  Assistant  Cashier 

W'M.  B.  LAVINIA,  Assistant  Cashier 

LOUIS  J.  MEAHL,   Assistant  Cashier 

A.  O.  WILCOX,  Mgr.  Foreign  Exchange  Department 


WALTER  L.  JOHNSON.  Mgr.  Collection  Department         CHAS.  S.  MACFERRAN,  Auditor 


14 


Attention  is  called  to  the 
announcement   on  page  n 


Copyright  by  Gifford,  Portland. 


PORTLAND  FROM  CITY  PARK. 


LADD  &  TILTON  BANK 


0 

pi 

fllfll 

ii ii ii  n nm'm 

lllill  liffiiriiiH 

II If  1|    fff!  !*•""'§ 

11  ii  ii  n«*J!S 

pi* 


Established  1859 


Portland,  Oregon,  U.  S.  A. 


Capital    - 
Surplus    - 


$  1.000.000.00 
1.000.000.00 


OFFICERS 
W.  M.  LADD,  Pre..  EDWARD  COOKINGHAM.  Vice-Pres. 
W.  H.  DUNCKLEY,  ROBERT  S.  HOWARD, 

Cashier  Asst.  Cashier 

J.  W.  LADD,  Asst.  Cashier, 

WALTER  M.  COOK,  Asst.  Cashier 

DIRECTORS 
WILLIAM  M.  LADD  HENRY  L.  CORBETT 

EDWARD  COOKINGHAM  CHARLES  E.  LADD 

J.  WESLEY  LADD  FREDERIC  B.  PRATT 

THEODORE  B.  WILCOX 


We  give  special  attention  to  collections  and 
make  prompt  returns  on  the  most  favourable 
terms.  Accounts  of  banks,  firms,  and  individuals 
solicited.  We  issue  foreign  exchange,  letters  of 
credit,  and  travelers'  checks. 

We  will  be  pleased  to  furnish  information  con- 
cerning climate,  resources,  &o,  of  the  state  of 
Oregon.  Our  credit  department  will  answer  in- 
quiries concerning  securities  and  financial  invest- 
ments in  this  section.     Correspondence  solicited. 


Attention  is  called  to  the 
announcement  on  page  II 


15 


INDEX 


INDEX    TO    CONTENTS    BY    SECTIONS. 

Editorial   Section    21 

The  Pacific  Coast 22 

The  Canal  and  the  Pacific  Coast 25 

The    Panama    Canal 27 

History  and  Construction.     Isham   Randolph 28 

Uses  and  Benefits.      Emory  R.  Johnson 43 

The   Panama   Canal    and    the     Railroads.      John 

Maurice   Clark    47 

The  Remote  Effects  of  the  Panama  Canal.     John 
Bates  Clark  50 

The   Pacific   Coast 53 

Banks  &  Banking.     J.  K.  Lynch 54 

Public   Utilities.     C.   L.   Cory 57 

Present  Status  of  West.  Irrig.    Walter  V.  Woehlke     61 

Water  Powers.     W.  E.  Herring 69 

Rivers  &  Harbors.     W.  H.  Bixby 71 

Securities.     G.    K.    Weeks 74 

Mining.     H.  Poster  Bain 76 

Agriculture.     Thos.  H.  Means 78 

Intensive  Farming  on  Large  Scale.    S.  F.  B.  Morse     83 

Oil  Industry.     Frank  J.  Silsbee 87 

Shipping  Industry.     Robert  Dollar 92 

Fisheries.     Miller  Freeman 94 

The  Expositions  97 

Panama  Pacific  Int.  Expo.,  San  Francisco  1915.  ...     98 
Panama  California  Exposition  San  Diego  1915....   100 

Timber    Section    103 

Redwood  of  California.     Junius  H.  Browne 105 

Pacific  Coast  Timber.    G.  X.  Wendling 107 

Timber  Bonds.    T.  S.  McGrath 110 

State  &  City   Section 113-127 

Statistics  of  debts  and  resources  of  states, 
cities  and  towns  in  California,  Oregon,  and 
Washington.  States,  and  cities  and  towns  in 
each  state  arranged  in  alphabetical  order. 

Corporation   Section    129-150 

Securities  and  reports  of  public  service  and  mis- 
cellaneous companies  of  the  Pacific  Coast.  Ar- 
ranged in  alphabetical  order. 

Public  Service  Companies 151-161 

Additional  statements. 

Bank  &  Trust  Company  Section 163-170 

Statements  of  banks  and  trust  companies  of 
the  Pacific  States.  As  the  Federal  Reserve 
Bank  (District  12)  is  located  in  San  Francisco, 
the  figures  of  the  banks  in  that  city  are  first 
shown,  followed  by  California  banks  arranged 
alphabetically   by   cities.     Statements   of   other 


banks  follow,  states,  and  cities  in  each  state,  be- 
ing arranged  in  alphabetical  order. 

Descriptive   Section    171-174 

A  Unique  California  Industry.     L.  E.  Webster. 
ALPHABETICAL    INDEX    TO    ARTICLES. 

Agriculture  of  the  Pacific  Coast — The 78 

Banks  and  Banking  on  the  Pacific  Coast 54 

Canal   and   the    Pacific   Coast — The ,..     25 

Fish  Facts  and  Figures 94 

Intensive  Farming  on  a  Large  Scale 83 

Irrigation — Present    Status   of   Western 61 

Mining  on  the  Pacific  Coast 76 

Oil   Industry   of   California— The 87 

Pacific  Coast— The   22 

Pacific  Coast  Timber 107 

Panama-California  Exposition   100 

Panama  Canal — Its  History  and  Construction 28 

Panama  Canal  and  the  Railroads — The 47 

Panama   Pacific    International    Exposition 98 

Public  Utilities  of  the  Pacific  Coast— The 57 

Redwood    of    California— The 105 

Remote  Effects  of  the  Panama  Canal — The 50 

Rivers  and  Harbors  of  the  Pacific  Coast 71 

Securities — Pacific   Coast    74 

Shipping  Industry  of  the  Pacific  Coast — The 92 

Timber    Bonds 110 

Unique    California    Industry — A 172 

Uses  and  Benefits  of  the  Panama  Canal 43 

Water  Powers  of  the  Pacific  Coast 69 

ALPHABETICAL    INDEX    TO    CONTRIBUTORS. 

Bain,  H.   Foster 76 

Bixby,    Wm.    H 71 

Browne,  Junius  H 105 

Clark,  John  B 50 

Clark,  John  M    47 

Cory,    C.    L 57 

Dollar,    Robert    92 

Freeman,  Miller  94 

Herring,  W.  E 69 

Johnson,   Emory   R 43 

Lynch,  J.  K 54 

McGrath,  T.  S no 

Means,   Thos.   H 78 

Morse,  S.  F.  B 83 

Randolph,  Isham 28 

Silsbee,   Frank  J 87 

Webster,  L.  E 172 

Weeks,  G.  K \\     74 

Wendling,  G.   X 107 

Woehlke,  Walter  V '.'.'.'.'.     61 


lit  @B  \\  ; 

lHUira 
.ill  IS  bssj 

,[  Sfi  , 

it  JUL  & 


The  Oldest 
National  Bank 
in   California 


The 

First  National  Bank 
of  San  Francisco 

Organized   1870 

Capital  and  Surplus  $4,500,000 


Direct  connections  with 

every    city    and    almost 

every  town  on  the  Pacific 

Coast. 


Prompt  Attention  Given  to  all  Classes  of  Collections 


16 


Attention  is  called  to  the 
announcement  on  page  n 


INDEX 


ALPHABETICAL    INDEX    TO    ADVERTISERS. 

American  National  Bank,  San  Diego 167_ 

American  Real  Estate  Co.,  New  York 1¥> 

-Anglo  d  London  Paris  National  Dank,  San  Francisco..     18 
Associated  Savings  Banks  of  San  Francisco 162 

Babcock  Rushton  d  Co 170 

Banco  Commercialc  Italiana ITS 

Bank  of  California,  N.  A.  San  Francisco t&i 

Bank  of  Italy,  San  Francisco ";- 

Bolger  Mosscr  d  Willaman 127 

Brown  Bros.  d  Co ITS 

Byllesby,  H.  M.,  d  Co li> 

Byrne  d  McDonnell 148 

California  National  Bank,  Sacramento 170 

Columbus  Savings  &  Loan  Society,  San  Francisco 162 

Commercial  d  Financial  Chronicle Inside  back  cover 

Continental  d  Commercial  National  Bank,  Chicago....     10 

Corn  Exchange  National  Bank,  Chicago 20 

Cory,  C.  L 159 

Cory,  H.   T 159 

Coxoan-Kennet  &  Co 1 

Devitt,  Tremble  d  Co 149 

Deutsche  Bank,  Berlin 175 

Econom  ist,    Chicago 176 

Economist,  London Inside  front  cover 

Eyman  d  Co 126 

First  National  Bank  of  Los  Angeles 9 

First  National  Bank  of  San  Francisco 16 

French  American  Bank  of  Savings,  San  Francisco 162 

German  Savings  d  Loan  Society,  San  Francisco 162 

Once,  w.  R.,  &  Co 12 

Great  Western  Power  Co 134 

Hall  d  Leicis 148 

Hibernia  Savings  d  Loan  Society,  San  Francisco Hi.: 

Holt  Mfg.  Co 7-172-174 

Humboldt  Savings  Bank,  San  Francisco 162 

Illinois  Trust  d  Savings  Bank,  Chicago 6 

Investors'  Monthly  Manual 159 

Italian  American  Bank,  San  Francisco 162 


Ladd  d  Tilton  National  Bank,  Portland 15 

Lee,  Higginson  d  Co 186 

Los  Angeles  Gas  d  Electric  Co 161 

Los  Angeles  Railway  Corp 151 

Lyon,  Gary  d  Co 3 

McCoy  d  Co 127 

Mercantile  National  Bank  of  San  Francisco 5 

Mercantile  Trust  Co.  of  San  Francisco 5 

Merchants  Loan  d  Trust  Co.,  Chicago 2 

Mission  Savings  Bank.  San  Francisco 162 

Morris    Bros 158 

Mutual  Savings  Bank,  San  Francisco 162 

National  Bank  of  The  Republic,  Chicago 14 

National  Ice  d  Cold  Storage  Co 8 

Northtcestern  National  Bank,  Portland 168 

Pacific  Gas  d  Electric  Co 139-152-153 

Pacific  Light  d  Power  Corp 154 

Pacific  Lumber  Co 104 

Pacific  Power  d  Light  Co 160 

Pacific  Telephone  d  Telegraph  Co 141 

Perrin  Drake  d  Riley 149 

Poole-Clarke  L.  d  Co 102 

Portland  Railway  Light  d  Power 158 

Price,  John  E.,  d  Co 126 

Puget  Sound  Traction  Light  d  Power  Co 157 

Rollins,  E.  H.,  d  Sons 130 

Savings  Union  Bank  d  Trust  Co.,  San  Francisco 162 

Security  Savings  Bank,  San  Francisco 162 

Seattle  Lighting  Co 147 

Souders,  W.  G„  d  Co 4 

Southern  California  Edison  Co 156 

Staats,  Wm.  R.,  d  Co 13 

Straus,  S.  W„  d  Co 17 

Torrance,  Marshall  d  Co 112 

Union  Bank  of  Australia  Ltd 150 

Union  Trust  d  Savings  Bank,  Seattle 169 

Walker's  Manual  of  California  Securities 150 


WE  ARE  SPECIALISTS 

in  the  following  types  of  sound  securities,  netting  51  to  6%: 

First  Mortgage   Serial  Bonds  issued   by   Department  Store 
corporations  of  the  highest  credit  standing  in  the  large  cities. 

First  Mortgage  Serial  Bonds  secured  by  the  highest  class 
of  improved  real  estate  in  Chicago  and  other  Western  cities. 

First  Mortgage  Loans  secured  by  improved  Chicago  property. 

No  investor  has  ever  been  compelled  to  accept  loss  on  any 
security  purchased  of  this  House,  founded  32  years  ago. 

Write  for  Circular  X-100 

S.W.  Straus  &  Co. 

INCORPORATED 

MORTGAGE  ^  BOND  BAN  KERS 

CSTAftklSHKO  IM2 
STRAUS  BUILDING  ONE  WALL  STREET 

CH1CACO 


NEW  YORK 


Attention  is  called  to  the 
announcement  on  page  II 


17 


THE  YOSEMITE  VALLEY.  HALF  DOME  IN  THE  FOREGROUND. 


A  CALIFORNIA  BANK 

Deposits  increased  from   seventeen  millions   to   thirty   millions  in   five   years 

WITHOUT  AMALGAMATION 


Capital,  $4,000,000 
Surplus,    1,500,000 


Undivided  Profits,    .    $300,000 
Total  Resources,    $41,000,000 


OFFICERS 


Herbert  Flieshaker,  President  Washington  Dodge,  Vice-President  J.  Friedlander,  Vice-President 

C.  F.  Hunt,  Vice-President  R.  Altschul,  Cashier  C.  R.  Parker,  Assistant  Cashier 

Wm.  H.  High,  Assistant  Cashier  H.  Choynski,  Assistant  Cashier  G.  R.  Burdick,  Assistant  Cashier 

G.  F.  Herr,  Assistant  Cashier  A.  L.  Langerman,  Secretary 


Bonds 


Bonds 


ATTENTION  is  directed  to  the  opportunities  offered  investors  in  Pacific  Coast  Municipal  and 
Corporation  Securities  yielding  from  h.%  to  \%  higher  return  than  corresponding  Eastern  Bonds. 

Legal  opinion  furnished  on  Municipal  Issues. 
CORRESPONDENCE  INVITED 

BOND     DEPARTMENT 

ANGLO  &  LONDON  PARIS  NATIONAL  BANK 

SAN  FRANCISCO,  CAL. 
Members  San  Francisco  Stock  and  Bond  Exchange 


18 


Attention  is  called  to  the 
announcement  on  page  n 


H.  M.  Byllesby  &  Company 

ENGINEERS 

New  York  CHICAGO  Tm 

Trinity  Building  Continental  &  Commercial  Bank  Bldg.  Washington 

Purchase,  Finance,  Design,  Construct 
and  Operate  Electric  Light,  Gas,  Street 
Railway  and  Water  Power  Properties 

EXAMINATIONS  AND  REPORTS 

Utility  Securities  Bought  and  Sold 


Among  the  public  utility  properties  managed 
by  H.  M.  Byllesby  &  Company,  the  following 
are    located    in    the     Pacific    Coast    States : 


San  Diego  Consolidated  Gas  &  Electric  Company 

San  Diego,  California 

Western  States  Gas  &  Electric  Company 

Stockton,  Cal.  Richmond,  Cal.  Eureka,  Cal. 

Oregon  Power  Company 

Eugene,  Oregon  Albany,  Oregon  Corvallis,  Oregon 

Dallas,  Oregon  Marshfield,  Oregon 

Tacoma  Gas  Company 

Tacoma,  Washington 

Everett  Gas  Company 

Everett,  Washington 


Attention   is  called  to  the 

announcement  on  page  II  \Q 


The  CORN  EXCHANGE 

NATIONAL  BANK 


CHICAGO 


i -  --JL:  ■'■?ii,;?.iOT<)»' 


Corn  Exchange  Bank  Building 

NORTHWEST  CORNER  ADAMS  AND  LA  SALLE  STREETS 

Capital  $3,000,000      Surplus  $5,000,000      Undivided  Profits  $1,500,000 


OFFICERS 


ERNEST  A.  HAMILL,  President 

CHARLES  L.  HUTCHINSON,  Vice-President 

CHAUNCEY  J.  BLAIR,  Vice-President 

D.  A.  MOULTON,  Vice-President 

B.  C.  SAMMONS,  Vice-President 


FRANK  W.  SMITH,  Secretary 

J.  EDWARD  MAASS,  Cashier 

JAMES  G.  WAKEFIELD,  Assistant  Cashier 

LEWIS  E.  GARY,  Assistant  Cashier 

EDWARD  F.  SCHOENECK,  Asst.  Cash. 


CHARLES  H.  WACKER 
MARTIN  A.  RYERSON 
CHAUNCEY  J.  BLAIR 
EDWARD  B.  BUTLER 


FOREIGN  EXCHANGE 


DIRECTORS 

CHARLES  H.  HULBURD 
BENJAMIN  CARPENTER 
CLYDE  M.  CARR 
WATSON  F.  BLAIR 


LETTERS  OF  CREDIT 


EDWIN  G.  FOREMAN 
CHARLES  L.  HUTCHINSON 
EDWARD  A.  SHEDD 
ERNEST  A.  HAMILL 


CABLE  TRANSFERS 


20 


Attention  is  called  to  the 
announcement  on  page  II 


EDITORIAL 
SECTION 


22 


THE  PACIFIC  COAST 


THE  PACIFIC  COAST. 
At  a  time  when  the  columns  of  the  press  are 
so  largely  devoted  to  chronicling  the  events  of  a 
great  war,  and  attempting  to  prognosticate  its 
results;  and  when  the  financial  journals  are 
chiefly  concerned  in  discussing,  and  striving 
to  solve,  the  many  and  varied  problems  arising 
from  conditions  created  by  a  world  disturbance 
of  such  magnitude,  there  is  no  little  satisfaction 
in  presenting  to  our  readers  an  issue  devoted  to 
so  great  an  achievement  of  Peace  as  the  Panama 
Canal,  and  to  a  territory  so  pregnant  with  possi- 
bility in  peaceful  pursuits  as  the  Pacific  Coast  of 
the  United  States. 

Departing  from  their  usual  custom,  the  pub- 
lishers herein  offer  an  edition  which  is,  except 
for  the  statistical  departments,  composed  entire- 
ly of  contributed  articles.  In  arranging  for  each 
of  these  articles  dealing  with  conditions  on  the 
Pacific  Coast  the  publishers  have  sought,  and 
have  been  so  fortunate  as  to  secure,  the  co-oper- 
ation of  the  individual  to  whom  a  concensus  of 
opinion  pointed  as  best  equipped  and  qualified 
to  deal  with  the  special  subject  assigned  to  him. 
The  opinions  of  these  contributors  are  based  on 
experience,  not  on  theory. 

As  we  have  become  familiar  with  these  various 
articles,  during  the  process  of  assembling,  co-or- 
dinating, and  preparing  the  edition  for  the  press, 
we  have  been  particularly  impressed  by  cer- 
tain points  of  unanimous  agreement  in  the 
opinions  expressed.  As  the  articles  cover  a  broad 
range  of  activity,  and  emanate  from  minds  work- 
ing along  widely  diversified  channels,  such  con- 
cordances are  significant,  and  it  seems  pertinent 
to  direct  the  reader's  attention  to  them.  It  may 
also  be  well  to  emphasize  the  fact  that  where  our 
contributors  unite  in  a  common  opinion  they  are 
in  entire  accord  with  those  leaders  of  commercial 
thought  and  activity  who  are  directing  the  work 
of  intelligent  development  and  substantial  prog- 
ress throughout  the  entire  West  Coast  territory. 
The  first  of  these  points  in  importance  is,  gen- 
erally speaking,  the  last  to  be  brought  out  in  the 
individual  articles,  namely:  the  secure  confidence 
with  which  the  future  is  awaited — the  dominant 
note  of  optimism.  It  is  not  uncommon  to  hear, 
from  those  but  vaguely  familiar  with  conditions 
on  the  Pacific  Coast,  expressions  of  opinion  to 
the  effect  that  affairs  there  are  in  a  sad  way; 
that  a  revival  of  activity  is  remote,  if  not  im- 
probable. Such  is  not,  in  fact,  the  case.  The 
Pacific  Coast  may  pause  to  permit  of  a  re-ad- 
justment of  fundamental  conditions.  In  its  periods 
of  more  strenuous  activity,  basic  economic  prin- 
ciples trail,  breathless,  in  the  wake  of  the  im- 
petuous optimism  and  headlong  energy  which 
characterize  its  progress.  Re-adjustments  are 
thus  rendered  necessary.  Also,  since  no  human 
energy  is  absolutely  indefatigable,  prodigal  ex- 
penditures of  vital  force  necessitate  occasional 
recruiting  intervals  of  relaxation.  Thus,  the 
Coast  may  pause — must,  indeed — but  let  none 
be  so  fatuous  as  to  believe  that  it  will  stop. 

The  Pacific  Coast,  in  common  with  the  rest  of 
us,  has  made  its  mistakes  and  is  suffering  for 


them;  the  more  keenly  in  that,  during  a  normal 
period  of  rehabilitation  and  adjustment,  events 
conspire  to  bring  about  a  time  of  stress,  when  the 
results  of  all  mistakes  are  magnified,  and  made 
peculiarly  obvious  and  painful.  That  such  mis- 
takes are  fully  appreciated,  and  that  constructive 
minds  are  engaged  in  devising  remedies,  is  the 
second  point  which  will  become  apparent  in  the 
perusal  of  the  subsequent  pages. 

The  third  is:    the  unanimous  recognition  of 
the   fact   that   the   future   influx   of   population 
to   the  Pacific   Coast  must  be   diverted,   to  as 
great  a  degree  as  possible,  onto  the  land.     Com- 
merce may  be  broadly  classified  in  three  element- 
ary divisions:   Production,  Conversion,  and  Mer- 
chandising, the  first  including  only  the  develop- 
ment of  natural  resources  and  the  actual  crea- 
tion of  wealth,  the  second  comprehending  the 
treatment  of  raw  materials  by  manufacture,  the 
third  involving  the  transfer  of  commodities  be- 
tween men  or  nations.     Activity  in  the  first  of 
these   divisions   distributes  population   over  the 
agricultural  lands,  through  the  forest  areas,  and 
in  the  mountainous  regions.     The  second  and 
third  divisions  create  cities,  either  as  industrial 
centers  or  as  logical  points  of  transfer.     Both  of 
the  latter  divisions  being  wholly  dependent  upon 
the  first,  it  is  obvious  that  population  should  ad- 
just itself  accordingly.     It  is  an  economic  error 
to  rear  large  cities  on  the  edge  of  a  great  poten- 
tially productive  territory,  only  a  small  percent- 
age of  which  is  fully  developed.  The  Pacific  Coast 
logically  falls  into  the  first  of  the  three  divisions. 
From  the  standpoint  of  its  ultimate  possibilities, 
productive  development  of  the  Pacific  Coast  has 
only  been  fairly  begun,  while  its  cities  have  grown 
with  an  astounding  and  disportionate  rapidity.  Cen- 
sus figures  show  a  much  larger  percentage  of 
urban  population  on  the  Pacific  Coast  today  than 
in  other  essentially  productive  areas  in  the  United 
States.     The   Coast  may  be  termed,  to  coin  a 
phrase,  "over-citied,"  for  the  time  being.     The 
contemplated   effort  at   diversion   of  population 
onto  the  land  will  gradually  correct  the  error, 
and  the  result  will  be  a  sounder  economic  basis 
throughout  the  territory. 

The  fourth  point  of  unanimity  to  be  noted  is: 
that  land  values  on  the  Pacific  Coast  have  ad- 
vanced too  far,  and  too  fast.  It  is  frequently  re- 
marked by  those  most  actively  engaged  in  the 
Coast's  permanent  and  sane  development  that 
the  incubus  from  which  the  territory  has  suf- 
fered most  in  the  past  has  been  the  unscrupulous 
real  estate  promoter,  colloquially  (but  aptly) 
termed  "land  shark."  The  operations  of  those 
that  prey  on  the  credulous  were  there  made  so 
easy  and  profitable  by  the  alluring  possibilities  of 
high  returns  from  irrigated  land,  that  their 
business  extended  with  such  rapidity  as  to  be- 
come a  serious  menace  to  the  prosperity  of  the 
territory. 

Illustrative  of  what  is  being  done  on  the  Coast 
to  remedy  the  situation  as  regards  land  values, 
and  to  discourage  the  further  activities  of  the 
"land  shark,"  witness  the  sweeping  reductions  in 
the  price  of  raw  land,  and  the  restrictions  re- 


THE  PACIFIC  COAST 


23 


garding  its  sale,  which  have  been  instituted  by 
the  railroads,  and  other  large  landholders,  as 
cited  in  a  subsequent  article.  A  recent  decision 
of  Judge  Bean  in  a  United  States  district  court  in 
Oregon  is  likewise  apposite  for  purposes  of  illus- 
tration. The  case  in  point  was  a  suit  brought  by 
land  purchasers  against  the  sellers,  alleging  mis- 
representation of  the  productive  possibilities  of 
the  land.  In  deciding  for  the  plaintiffs  the  pre- 
siding judge  ordered  the  return  of  all  payments 
on  the  contract,  together  with  the  costs  of  the 
action,  stating  that  the  sellers  "must  know  what 
the  land  is  good  for" ;  belief  in  its  possibilities  not 
constituting  a  sufficient  defense  against  the 
charge  of  misrepresentation.  The  adoption  of 
such  drastic  measures  will  do  much  to  correct  the 
mistakes  of  the  past,  and  eliminate  the  possibility 
of  their  repetition. 

Much  of  the  publicity  that  has  emanated  from 
the  Pacific  Coast  has  been  unfortunate  in  char- 
acter. Consisting  largely  of  the  propaganda  of 
the  self-interested,  it  has  been  highly  bombastic; 
teeming  with  hyperbole.  It  has  exaggerated  all 
the  attractions  (inventing  them  when  occasion 
demanded),  and  carefully  avoided  any  mention 
whatsoever  of  any  existing  difficulties  to  be  en- 
countered. Its  tendency  has  been  to  attract  the 
invalid,  seeking  a  salubrious  climate  where  an 
exceptional  fruitfulness  of  soil  might  offset  im- 
paired physical  efficiency;  the  indolent,  thinking 
to  obtain  a  maximum  return  for  a  minimum  of 
effort;  the  incompetent,  hoping  that,  where  a 
benign  nature  dispenses  special  largess,  lack  of 
ordinary  ability  would  not  be  so  apparent,  nor  its 
results  so  painful.  Such  types  are  a  benefit  to  no 
community,  least  of  all,  perhaps,  to  the  Pacific 
Coast,  where  the  tremendous  amount  of  develop- 
ment yet  to  be  accomplished  demands  a  little 
more  than  an  average  man's-sized  day's  work 
from  each  inhabitant  every  twenty-four  hours. 
The  failures  of  such  deluded  ones  have  added  no 
small  quota  to  the  disastrous  results  of  the 
operations  of  the  "land  shark." 

Commercial  organizations,  variously  desig- 
nated, abound  on  the  Pacific  Coast.  Many  of 
these  owe  their  origin  to  the  local  activities  of  the 
traffic  department  of  one  of  the  transcontinental 
railroad  systems,  which  has  indirectly  profited 
by  fostering  and  encouraging  them.  While  these 
organizations  have  been  laudably  energetic  and 
enthusiastic,  they  are  frequently  ineffectual, 
either  because  badly  managed,  or  because  insuf- 
ficiently informed  as  to  the  real  needs  of  the 
community  which  they  were  attempting  to 
serve,  or  both.  Of  late,  a  number  of  such  organ- 
izations have  undertaken  to  make  a  serious 
study  of  conditions  and  conduct  development 
and  publicity  campaigns  with  intelligence  and 
efficiency.  These  are  performing  a  real  service 
to  their  respective  territories.  They  eliminate 
misrepresentation,  in  so  far  as  is  possible,  and 
endeavor,  by  presenting  the  real  facts  to  pros- 
pective settlers,  to  prevent  an  influx  of  indigents 
and  undesirables.  The  Coast  wishes  to  increase, 
not  only  its  population,  but  also  its  thought 
units,  and  units  of  energy  per  square  mile. 


The  real  work  of  development  and  progress 
was  begun,  and  is  being  continued,  by  men  of 
the  largest  physical  and  mental  capacity.  The 
hostile  Redman,  the  weary  miles  of  unknown 
desert,  the  difficult  mountain  ranges,  and  other 
obstacles  encountered  and  overcome  by  the  pio- 
neers, precluded  the  possibility  of  any  but  the 
sturdiest  and  most  courageous  reaching  the 
Coast  at  all  in  the  days  of  early  settlement.  Such 
men  have  developed  the  Coast,  and,  conversely, 
the  Coast  develops  such  men.  Undoubtedly  cli- 
matic conditions  are  partially  responsible,  but 
there  is  something  deeper,  more  subtle,  and  more 
inspiring,  at  work  at  man-making  on  the  Pacific 
Coast.  The  very  vastness  of  the  territory,  its 
great  distances,  and  the  sense  of  limitless  ex- 
panse which  it  engenders,  seems  to  demand 
mental  expansion  and  expansiveness.  Magni- 
tude is  omni-present  on  the  Pacific  Coast.  Its 
mountains  are  capped  with  eternal  snows,  while 
in  its  fertile  valleys,  millions  of  acres  bask  in 
eternal  summer.  The  Coast  mentions  a  chasm 
as  worthy  of  note;  it  is  thirteen  miles  wide  and 
a  mile  deep ;  a  waterfall ;  it  has  a  sheer  fall  of  half 
a  mile.  Trees  grow  four  hundred  feet  high,  and, 
through  apertures  made  in  their  base  the  Coast 
drives  its  coach  and  four.  Comparisons  super- 
imposing a  considerable  group  of  the  European 
countries,  with  a  number  of  our  eastern  states 
thrown  in  for  good  measure,  on  one  of  the 
Pacific  Coast  states,  and  still  leaving  a  respect- 
able margin,  have  been  worn  threadbare  to 
odium.  None  the  less  the  physical  bigness  of 
things  is  inspirational,  and  has  its  own  peculiar 
effect  on  those  to  whom  such  wonders  are  the 
commonplaces  of  their  immediate  surroundings. 
Take  at  random  some  of  the  figures  which  will 
be  found  on  the  ensuing  pages:  six  hundred 
continuous  miles  of  high  tension,  steel  towered, 
transmission  line;  five  hundred  and  fifty  thousand 
horse  power;  four  billion,  three  hundred  million 
barrels  of  oil;  fifteen  hundred  and  twelve  billion, 
nine  hundred  million  feet  of  standing  timber.  The 
business  man  of  the  Pacific  Coast  must  not  only 
deal  constantly  in  such  figures  in  the  regular 
course  of  routine  work;  but,  to  transact  his  busi- 
ness intelligently,  he  must  be  able  to  comprehend 
them  and  their  significance.  Small  wonder  that 
he  expands  in  imagination,  looks  far  into  the 
future,  and  falls  into  an  expansive  habit  of  mind. 
Nor  can  he  be  severely  censured  if  he  grows  to 
be  rather  cavalier  in  his  treatment  of  1.3  inches, 
or  tupence  ha'penny. 

Rome  has  sat  for  centuries  on  her  seven  hills, 
and  seen  the  westward  march  of  empire  reach 
and  pass  her;  Seattle,  finding  herself  somewhat 
similarly  located  topographically,  decided  that 
hills  were  bad  for  business.  Visioning  an  empire 
to  come,  she  temporarily  removed  herself  from 
her  hills  and  proceeded  to  dispense  with  them  by 
means  of  the  most  abundant  available  commodity 
— water.  The  hills  were  sluiced  away  onto  the 
tide-flats,  where  they  make  excellent  factory 
sites.  In  replacing  herself  on  the  leveled  land, 
Seattle  demands  quarters  so  modern  that  they 
include  a  forty-two  story  office  building. 


24 


THE  PACIFIC  COAST 


On  the  hot  ashes  of  one  of  the  most  dire  munic- 
ipal disasters  in  history,  San  Francisco  began 
her  rehabilitation,  and  in  six  years  has  completed 
it.  It  requires  a  search  to  discover  traces  of  the 
fire  in  the  bright,  modern  metropolis  at  the  Gold- 
en Gate.  These  instances  are  cited  only  as  typ- 
ical, not  as  unique.  The  spirit  is  the  same  through- 
out the  entire  territory,  and  even  the  smallest 
communities  are  performing  feats  proportion- 
ately as  startling. 

The  reticent  and  reserved  may  take  exception 
to  the  easy  familiarity  and  blatant  local  pride  of 
certain  types;  the  ultra-conservative  may  depre- 
cate the  proclivity  of  certain  others  to  deal  con- 
tinually in  extravagant  figures  and  superlatives; 
there  are  extremes  of  every  type,  and  there  is  log- 
ical reason  for  such  idiosyncracies.  Speaking  by 
and  large,  the  man  that  the  Coast  develops  is  lov- 
able, stimulating,  and  wholly  admirable.  He  lives 
in  the  open  air  and  sunshine,  does  big  things  in  a 
big  way,  as  a  casual  matter  of  course,  and  he  is 
not  afraid. 

Thus  we  find,  through  those  who  speak  for  it, 
that  the  Pacific  Coast  faces  the  future  with  con- 
fident optimism.  Proud  of  itself  and  of  its  past 
achievements,  it  nevertheless  fully  realizes  its 
mistakes  and  is  endeavoring  to  rectify  them  in 
the  most  reasonable  manner.  It  seems  to  be  a 
generally  accepted  fact,  that  further  immediate 


development  should  be  along  the  lines  of  produc- 
tion— the  increasing  creation  of  wealth.  To  those 
working  intelligently,  conscientiously,  and  per- 
sistently along  this  line,  there  is  no  section  of  our 
land  that  offers  a  more  attractive  field. 

To  the  shirker  there  is  nothing  offered,  west  of 
the  Rockies,  other  than  the  usual  emolument  ac- 
cruing to  the  indifferent  and  inferior  worker.  To 
the  average  man,  the  Coast  territory  holds  forth 
the  certainty  of  a  generous  reward  for  earnest 
endeavor.  But  to  him  in  whom  lies,  either  latent 
or  developed,  the  germ  of  true  commercial  great- 
ness; who  can  think  in  more  than  eight  figures, 
and  build  for  more  than  a  hundred  years;  the 
one  man  in  ten  thousand  who  may,  perhaps,  re- 
claim another  Imperial  Valley,  or  bridge  another 
Great  Salt  Lake — to  him  there  opens  a  field  of 
limitless  possibilities  presenting  problems  and 
struggles  to  delight  his  soul.  If  he  will  go  to  the 
Coast  and  identify  himself  with  it;  permit  the 
Coast  to  develop  him  along  the  lines  that  it  does 
develop  men;  become  inoculated  with  that  indom- 
itable spirit  that  fires  those  that  dwell  within  its 
boundaries;  make  their  people  his  people,  and 
their  God  his  God;  take  his  share  of  the  great 
work,  and  solve  his  share  of  the  great  problems; 
give  to  the  Coast  his  best,  unselfishly,  and  with 
true  patriotism; — to  him  the  Pacific  Coast  will 
return  lavish  measure  of  honor  and  gratitude, 
and,  incidentally,  the  ransom  of  a  hundred  kings. 


Copyright  1914,  by  Curtis  &  Miller. 


SEATTLE'S    NEW    SKYSCRAPER    AND    MOUNT    RAINIER 


THE  PANAMA  CANAL  AND  THE  PACIFIC  COAST 


25 


THE  CANAL  AND  THE  PACIFIC  COAST. 
From  a  commercial  point  of  view,  the  main  object  of 
undertaking  such  a  work  as  the  Panama  Canal  is,  of 
course,  the  shortening  of  distances  for  oversea  traffic. 
It  is  abvious  that,  given  a  line  of  steamships  running 
between  two  ports,  great  benefit  will  arise  if  the  dis- 
tance to  be  traversed  is  halved  or  considerably  re- 
duced. Here  it  is  proposed  to  make  an  attempt  to 
estimate  the  effect  of  the  Panama  Canal  upon  the 
trade  of  the  Pacific  coast  of  the  United  States  and 
Canada  with  Great  Britain.  The  following  figures 
show  the  saving  of  distances  which  will  be  made  by 
English  vessels  and  vessels  of  the  east  coast  of  the 
United  States  when  making  voyages  to  Pacific  ports. 
Seattle  is,  of  course,  a  United  States  port,  but,  as  it 
is  close  to  Vancouver,  the  figures  relating  to  it  may 
be  taken  as  applying  to  Canada  also : — 

New  York.  New  Orleans.  Liverpool. 
To  Seattle  by  Magellan.  13.953  14,369  14,320 

To  Seattle  by  Panama.  6,080  5,501  8,654 


Distance  saved 


7,873 


5,666 


8,868 

New 

New  York.  Orleans.  Liverpool. 
To  San  Francisco  by  Magellan  13,135         13,551         13,502 
To  San  Francisco  by  Panama.     5,262  4,683  7,836 


Distance  saved    7,873 


8,868 


5,666 


Thus  it  will  be  seen  that  New  York  and  New  Orleans 
gain  a  much  greater  advantage  than  Liverpool.  On 
the  other  hand,  Jamaica  and  the  other  West  Indian 
islands  will  be  brought  much  nearer  the  Pacific 
coast,  and,  what  is  a  far  greater  benefit,  they  will 
find  themselves  upon  a  main  trade  route  instead  of 
being,  as  hitherto,  in  a  cul:de-qac. 

From  the  commercial  point  of  v^ew,  trade  in  the 
Tinted  States  ports  is  the  most  important  to  Great 
Britain,  not  merely  because  of  the  volume  of  trade 
between  the  Western  States  and  Great  Britain  which 
goes  by  sea,  but  because  of  the  much 'larger  popula- 
tion in  the  vast  districts  tributary  to  San  Francisco 
compared  with  the  population  of  Western  Canada. 
The  population  of  the  three  Pacific  American  States 
was  over  4  millions  in  1910,  while  more  than  2y2 
millions  were  enumerated  in  the  eight  adjacent 
mountain  States;  whereas  there  were  less  than  iy± 
millions  in  1911  in  the  whole  of  British  Colum- 
bia, Alberta,  Saskatchewan,  and  the  North- West  ter- 
ritories. The  following  table  shows,  moreover,  that 
though  Canada's  trade  from  the  Pacific  to  this  coun- 
try is  relatively  large,  it  is  now  much  smaller  than 
from  American  ports: — 

Net  Tonnaoe  of  Shipping  Entered  and  Cleared  ix  British 
Posts  from  Canada  and  the  United  States  in  1912. 

Entered.  Cleared. 

Canada—  Tons.  Tons. 

Atlantic  ports  2,688,448  2,578,993 

Pacific  ports    93,850  57,618 

U.  S.  A.— 

Atlantic  ports  8,451,803  8,806,192 

Pacific  ports   184,013  115,088 

Thus  the  Canadian  Pacific  shipping  is  a  larger  pro- 
portion of  the  whole,  but  is  not  so  large  as  our  trade 
with  San  Francisco  and  Puget  Sound. 

The  critical  point,  however,  is  not  the  amount  of 
shipping  that  now  passes  between  this  country  and 
the  Pacific,  but  the  amount  that  will  do  so  when  the 
Canal  is  open.  And  in  this  connection  it  should  be 
pointed  out  that  there  has  been  a  marked  decline  in 
Bhipping  between  this  country  and  American  Pa- 
cific ports,  and  this  for  two  reasons.     In  the  first 


place,  the  competition  of  trans-continental  routes  has 
no  doubt  diverted  traffic  from  the  slow  journey  round 
the  Horn,  and  in  the  second,  the  export  of  West- 
ern American  corn,  which  was  the  staple  cargo  of  the 
old  sailing  ships  from  California  to  Liverpool,  has 
been  partially  absorbed  by  the  home  market.  In 
view  of  this  latter  consideration  it  is  a  very  open 
question  whether  the  shortening  of  the  journey  will 
succeed  in  attracting  larger  quantities  of  Californian 
wheat  to  Great  Britain.  Puget  Sound  is  also  the 
outlet  for  timber  from  the  State  of  Washington, 
which  produces  more  than  any  State  of  the  Union, 
while  California  is  easily  the  largest  petroleum  pro- 
ducer in  the  States.  These  two  commodities  are 
badly  needed  by  this  country,  and  though  it  is 
doubtful  whether  the  tolls  will  be  light  enough  to 
make  it  commercially  feasible  to  bring  lumber 
through  the  Canal,  it  is  quite  possible  that  California 
might  send  some  of  its  oil  via  Panama.  The  trade, 
however,  which  is  most  certain  to  be  stimulated  by 
the  shortening  of  the  route  is  that  in  fruit,  which 
is  one  of  the  chief  products  of  the  Pacific  coast.  The 
Canal  will  bring  this  fruit  area  as  near  by  sea  to  the 
British  market  as  is  South  Africa. 

In  the  other  hand,  the  growing  population  of  these 
States  affords  a  market  for  British  goods  which  has 
been  appreciably  affected  by  the  reduction  of  the 
tariff. 

The  effect  that  the  Canal  may  have  upon  Canada 
is,  naturally,  of  paramount  interest  to  Englishmen. 
One  of  the  main  industrial  features  of  the  present 
time  is  the  development  of  the  western  portions  of 
Canada,  and  these  are  certain  to  make  abundant  uso 
of  the  Canal.  Recently,  Dr.  Vrooman  read  a  paper 
before  the  Royal  Colonial  Institute  in  which  he  took 
a  very  sanguine  view  of  the  country  and  the  ad- 
vantages which  it  will  derive  from  the  Panama 
Canal.  "Two  thirds,"  he  said,  "of  the  future  prod- 
ucts of  Canada  are  tributary  to  the  western  sea." 
There  is  no  doubt  that  Alberta  and  Saskatchewan 
might  easily  produce  five  times  as  much  grain  as 
they  are  now  doing,  and  may  probably  do  so  in  the 
not  distant  future.  Such  an  estimate  is  not  merely 
an  exercise  of  the  imagination,  as  is  too  often  the 
case  in  forecasts  of  alleged  coming  countries;  the 
unoccupied  lands  are  of  exactly  the  same  quality  as 
the  productive  lands,  and  a  stream  of  immigrants  is 
pouring  in ;  thus  the  production  of  Western  Canada  is 
certain  to  increase  by  leaps  and  bounds.  It  is  esti- 
mated that  Alberta  has  one  hundred  million  of  acres 
suitable  for  agriculture  and  less  than  three  million 
are  under  cultivation.  Saskatchewan,  which  is  con- 
siderably larger  than  France,  saw  its  population  in- 
crease from  91.000  to  492,000  between  1901  and 
1911.  It  has  about  eight  million  acres  under  culti- 
vation. It  is  practically  certain  that  these  two  prov- 
inces will  ship  their  grain  entirely  from  Pacific 
ports  when  the  Canal  is  opened.  Dr.  Vrooman  urges 
the  people  of  Canada  to  be  prepared  for  the  vast  in- 
crease of  traffic  which  he  believes  is  imminent.  He 
estimates  that  to  make  adequate  docks  at  Vancouver 
will  take  twenty  years,  and  is  anxious  that  works 
shall  be  at  once  begun  of  "sufficient  dignity  and  im- 
portance." Unfortunately,  the  people  of  Vancouver 
do  not  seem  to  be  awake  to  the  situation.  In  contrast 
with  this,  the  port  of  Los  Angeles,  which  aims  at  be- 


26 


THE  PANAMA  CANAL  AND  THE  PACIFIC  COAST 


coming  the  leading  port  of  the  coast,  has  pledged 
itself  to  spend  $18,000,000  on  its  harbour  by  1918. 
But,  whether  the  main  traffic  passes  through  the  ports 
of  Canada  or  North  America,  there  can  be  no  doubt 
that  a  large  proportion  of  it  will  pass  through  the 
Panama  Canal.  Another  circumstance  may  be  noted ; 
in  1912  only  one  sailing  ship  called  at  Vancouver, 
and  thus  practically  none  of  its  shipping  is  insepa- 
rably tied  to  the  Magellan  route. 

San  Francisco  exports  to  Great  Britain  produce 
valued  at  £  1,500,000  and  much  of  this  is  likely 
to  go  through  the  Canal,  especially  as  a  considerable 
proportion  consists  of  fruit,  salmon,  and  other  canned 
goods,  which  will  be  the  better  for  a  quick  passage. 
The  figure  given  above,  of  course,  only  refers  to  sea- 
borne trade;  by  far  the  largest  part  of  California's 
exports  goes  by  land,  and  much  of  this  will,  in  fu- 
ture, be  railed  to  the  Pacific  and  help  to  swell  the 
Canal  traffic.  San  Francisco  will  greatly  benefit  by 
the  Canal.  The  last  Consular  Report  says:  "It  is 
reported  that  various  steamship  companies — British, 
German,  Japanese,  and  others — are  making  arrange- 
ments to  run  lines  through  the  Panama  Canal  and 
make  San  Francisco  one  of  their  ports  of  call."  It 
is  also  anticipated  that  a  good  many  of  the  emigrants 
will  arrive  by  Panama,  thus  avoiding  the  expensive 
railway  journey  from  eastern  ports.  There  is,  in 
fact,  every  reason  to  expect  that  the  Pacific  coast  of 
North  America  will  contribute  very  largely  to  the 
traffic  of  the  Panama  Canal,  which  must  inevitably 
depend  for  its  success  mainly  upon  San  Francisco, 
Los  Angeles,  and  Vancouver.  At  present  the  South 
American  coast  is  not  likely  to  do  very  much  for  it. 

The  competition  of  the  Magellan  route  will  remain, 
and  doubtless  will  be  formidable  in  the  case  of  lum- 
ber and  other  bulky  articles,  but  the  distance  is  so 
enormous  that  Panama  can  hardly  fail  to  have  the 
preference  in  most  cases,  provided  that  the  Canal  tolls 
are  reasonable.  As  regards  Oriental  ports,  the  Suez 
Canal  will  be,  in  some  sort,  a  competitor.  The  Pan- 
ama Canal  will  only  bring  New  York  350  miles  near- 
er to  Hong  Kong,  while  Great  Britain  is  1,600  miles 
nearer  that  port  via  Suez  than  via  Panama.  So  far 
as  the  frozen  meat  trade  from  Australasia  is  con- 
cerned, shipowners  declare  that  they  will  make  no 
change  in  their  arrangements  in  spite  of  the  saving 
of  distance  by  coming  via  Panama;  for  they  prefer 
the  colder,  and  consequently  cheaper,  route.  The 
Canal  route  from  the  Antipodes  involves  a  long  slant- 
ing journey  through  the  tropics,  whereas  the  route 
from  New  Zealand  via  the  Horn  takes  the  shortest 
possible  route  across  the  equator.  Since  logs  of  most 
ships  show  that  when  water  is  entering  the  ship  at 
84  degrees  F.  the  refrigerating  machinery  has  to  be 
kept  going  for  12  to  15  hours  a  day,  against  9  hours 
a  day  when  the  water  is  entering  at  57  degrees  F.,  it 
is  clear  that  the  new  route  would  involve  additional 
expense  in  addition  to  the  tolls  levied  for  the  use  of 
the  Canal  itself. 

Again,  a  formidable  competitor  will  be  the  Tehu- 
antepec  Railway,  which,  opened  in  1907,  runs  from 
Puerto,  Mexico,  in  the  Gulf  of  Mexico,  to  Salina  Cruz, 
on  the  Pacific.  The  through  traffic  on  this  line  is 
rapidly  increasing,  and  now  amounts  to  over  700,000 
tons  yearly.  It  carries  more  than  double  the  freight 
of  the  Panama  Railway,  and  the  figures  of  the  lat- 


ter are  swollen  by  Canal  material,  which  will  soon 
cease.  The  following  figures  show  the  difference  be- 
tween the  Mexican  and  the  Panama  routes: — New 
York  to  San  Francisco,  via  Mexico,  1,173  miles 
shorter;  Liverpool  to  San  Francisco,  via  Mexico,  609 
miles  shorter;  New7  Orleans  to  San  Francisco,  via 
Mexico,  1,767  miles  shorter.  But  as  regards  many 
kinds  of  merchandise,  the  Mexico  route  is  likely  to 
compete  successfully  with  the  Canal.  A  writer  in  the 
Economic  Journal  estimates  the  annual  cost  of  the 
Canal,  including  sinking  fund,  at  21  million  dollars. 
"A  liberal  estimate  of  receipts  from  tolls,  based  on  the 
tonnage  of  vessels  which  might  have  used  the  Canal 
in  1909-10,  had  it  then  been  in  existence,  places  the 
revenue  at  something  over  .$6,000,000  per  annum. 
Therefore,  even  without  taking  into  account  any  in- 
crease in  operating  expenses  with  increased  tonnage, 
the  business  of  the  canal  must  grow  to  three  and  a 
half  times  the  estimated  volume  of  1919-10  before 
a  profit  can  be  realised."  At  one  time  a  far  more 
gloomy  view  was  taken  of  the  probable  receipts.  The 
eminent  United  States  traveller,  Colonel  Church, 
speaking  before  the  Royal  Geographical  Society, 
said :  "I  may  say  that,  with  a  year  of  labour,  I  ana 
lysed  all  the  commerce  that  would  possibly  go 
through  the  Canal  if  it  were  open  to-day,  and  I 
could  not  make  it  a  million  tons."  Certainly,  this  is 
an  underestimate,  but  it  is  important  to  notice  the 
contentions  that  only  6  per  cent,  of  the  area  of  South 
America  lies  on  the  Pacific  slope  of  the  Andes,  and 
that  the  North  American  railways  may  be  able  to 
carry  freight  as  cheaply  as  a  ship  can  carry  it  from 
San  Francisco  to  New  York  by  way  of  Panama,  The 
Canal  also  will  be  handicapped,  and  the  United 
States  will  be  handicapped  in  their  use  of  it,  as  long 
as  their  mercantile  marine  continues  on  its  present 
small  scale.  Mr.  Vaughan  Cornish  has  remarked: 
"There  is  at  present  some  ground  for  the  extreme 
opinion  sometimes  expressed  in  the  United  States 
that  the  Canal  is  being  built  with  American  money 
for  the  use  of  Europe — and,  one  may  add,  of  Japan." 
The  Canal,  in  all  probability,  will  disappoint  many 
expectations,  for  it  is  such  a  great  work  that  great 
results  are  expected  from  it,  and  these  can  hardly  be 
expected  under  the  present  conditions;  there  must  be 
material  to  work  upon.  It  should  be  remembered 
that  a  mere  saving  of  distance  is  not  enough  to  make 
a  waterway  successful.  To  compare  small  things 
with  great,  the  Corinthian  Canal  is  little  used,  al- 
though it  effected  a  very  considerbale  saving  of  dis- 
tance. But  the  Canal  will  have  the  advantage  of 
serving,  in  Western  Canada,  a  country  which  must 
be  one  of  the  chief  granaries  of  the  world,  and  can- 
not fail  to  grow  very  rapidly  in  population  and  pro- 
ductiveness. Whereas  Panama  is  not  now  on  a  trade 
route,  unless  the  comparatively  insignificant  one 
from  San  Francisco  to  Valparaiso  may  be  so  de- 
scribed, it  will  hereafter  stand  on  the  convergence 
of  two  routes — that  from  Europe  and  that  from 
New  York — and  these  two  will  radiate  from  Pan- 
ama into  the  Pacific  to  the  north  and  south  coasts, 
and  also  to  Japan,  China,  and  Australasia,  It  may  be 
long  before  the  tolls  become  remunerative,  but  its 
immediate  effect  upon  commerce  will  be  stimulat- 
ing, and  eventually  the  Isthmus  is  likely  to  become 
one  of  the  busiest  resorts  of  shipping  upon  the  face 
of  the  globe. 


THE  PANAMA 
CANAL 


The  Panama  Canal— Its  History  and  Construction 


By  ISHAM  RANDOLPH,  C.E.,  D.E. 


Member  of   the  Board  of   Consulting  Engineers  for  the   Panama  Canal.     Member  of  the  Advisory 

Board  of  Engineers  1909.     Chief  Engineer  of  the  Chicago  Drainage  Canal  During  Entire 

Period  of  Construction  1893  to  1907.     Consulting  Engineer  1907  to  1913. 


The  Panama  Canal  is  an  accomplished  fact! 
A  section  has  been  torn  from  the  backbone  of  the 
Isthmus  and  the  shores,  which  since  time  began 
have  stayed  the  proud  waves  of  the  Atlantic  of 
the  North  and  held  back  the  swelling  tides  of  the 
Pacific  on  the  South,  have  been  cleft  to  receive 
the  sweet  waters  of  an  inland  sea,  pent  up  by  man 
and  by  him  to  be  loosened  at  his  pleasure.  The 
Chagres  River  is  a  submissive  captive  and  the 
way  from  ocean  to  ocean  has  been  shortened  for 
the  toilers  of  the  sea  by  eight  thousand  four  hun- 
dred and  nineteen  miles. 

Such  is  the  fact  but  there  remains  an  ante- 
cedent history  to  that  fact,  and  a  part  of  that 
history  is  dependent  upon  "the  testimony  of  the 
rocks"  which  testimony  the  geologists  assume 
to  read  and  impart  the  facts  to  their  lay  brethren. 
But  there  are  "faults"  in  rocks  and  it  follows 
that  if  there  be  faults  in  the  text,  there  must  be 
faults  in  its  rendering  by  the  savant  who  under- 
takes it.  I  think  that  the  rocks  of  Panama  have 
baffled  the  geologists  and  kept  their  age  old 
secrets  and  will  keep  them  until  time  shall  be  no 
more.  Only  "He  who  knoweth  all  things"  can 
tell  when  and  how  there  came  to  be  the  narrow 
strip  of  land  which  serves  as  a  bridge  joining  the 
two  continents  of  America. 

We  know  that  it  exists  and  white  men  found 
it  out  only  422  years  ago.  And  when  they  found 
the  Isthmus  they  found  it  inhabited  by  a  people 
of  different  hue  and  different  characteristics,  and 
today  we  no  more  know  how  these  people  came 


to  be  upon  it  than  we  know  how  the  Isthmus 
came  to  be  a  barrier  between  the  world's  greatest 
oceans. 

He  who  essays  to  write  history  which  ante- 
dates his  own  existence,  or  if  it  be  contempora- 
neous and  not  coming  within  his  personal  knowl- 
edge, is  dependent  upon  what  others  have  written 
or  what  they  have  told  him,  for  what  he  accepts 
as  historic  fact  and  records  as  truth  to  be 
accepted  by  those  who  come  after  him.  The 
historian  should  be  a  delver  after  truth;  old 
archives  should  be  studied  and  the  weight  of 
evidence  carefully  considered  in  the  light  of 
reason  and  of  probability  before  ancient  history 
is  presented  to  modern  credulity  and  modern  his- 
tory should  stand  the  test  of  rigid  cross-exami- 
nation; its  witnesses  should  have  their  veracity 
tested  by  the  most  rigorous  standards. 

But  some  who  write  of  history  need  not  be  his- 
torians in  the  strict  sense  of  the  term,  for  the 
work  has  often  been  so  well  done  by  others  that 
he  can  "reap  where  he  has  not  sown"  and  gather 
of  the  harvest  made  ready  for  him,  and  that  is 
my  fortunate  situation  with  regard  to  all  the 
ancient  and  some  of  the  modern  history  of 
Panama. 

For  the  purposes  of  this  paper,  ancient  history 
long  drawn  out  is  unessential  but  ancient  history 
epitomized  meets  its  needs  fully;  and  most  ad- 
mirably have  these  needs  been  anticipated  by  the 
report  of  the  Isthmian  Canal  Commission  of 
1899-1901,  Chapter  2,  pages  18  to  43.     But  much 


TKE  FIRST  STEAMER  TO   PASS  THROUGH   THE   PACIFIC   LOCKS. 


THE  PANAMA  CANAL 


29 


of  what  is  there  recorded  is  irrelevant  and  be- 
yond the  scope  of  this  paper. 

Moreover,  if  the  facts  of  the  text  can  be  pre- 
sented in  fewer  words  to  meet  our  need,  that 
economy  in  language  will  be  practiced. 

"When  Columbus  left  Spain  in  1502,  on  his  fourth  and 
last  voyage,  his  intention  was  to  go  still  further  westward 
and  endeavor  to  find  a  strait  that  would  lead  to  India.  He 
would  thus  complete  his  great  discovery  and  demonstrate 
the  correctness  of  the  theories  upon  which  his  expeditions 
had  been  undertaken.  He  reached  Honduras  and  followed 
the  coast  line  to  Darien,  but  long-continued  and  severe 
storms,  the  hostile  attitude  of  the  Indians,  and  the  dis- 
couragement of  his  followers  interfered  with  his  plans  and 
progress,  and  with  sorrow  and  regret  he  turned  toward 
Hispaniola  with  his  shattered  ships  before  he  had  accom- 
plished the  long-hoped-for  result,  in  which,  however,  his 
faith  was  not  abated.  When  he  died  on  the  26th  of  May, 
1506,  he  was  still  fully  satisfied  that  his  discoveries  were 
In  the  eastern  part  of  the  Old  World,  and  never  fully  real- 
ized the  extent  and  grandeur  of  his  achievements." 

The  early  discoverers  were  all  searching  for  a 
strait  giving  direct  passage  to  the  East  (Cathay). 

Finally  they  came  to  the  realization  of  the  fact 
that  a  new  world  had  been  discovered  and  the 
strongest  confirmation  of  this  fact  was  afforded 
"in  September,  1513,  by  Vasco  Nunez  de  Balboa, 
then  governor  of  a  province  in  Darien  known  as 
Castilla  del  Oro,"  who  organized  an  expedition  to 
go  in  search  of  a  "great  sea,  beyond  the  moun- 
tains," of  which  the  Indians  had  told  him. 

"He  crossed  from  Santa  Maria  de  la  Antigua,  the  capital 
of  his  province,  a  city  founded  in  1509  or  1510,  near  the 
Atrato  River,  to  a  point  near  Caledonia  Bay,  where  Acla 
was  afterwards  built;  thence  he  proceeded  with  a  con- 
siderable force  of  Spaniards  and  Indians  across  the  divide, 
and  on  the  25th  day  of  the  month  reached  a  high  ridge 
above  the  gulf  which  he  named  San  Miguel.  Advancing 
beyond  his  companions  to  a  favorable  elevation,  he  was 
the  first  European  to  behold  the  great  ocean  to  the  south, 
which  he  called  the  South  Sea,  from  the  direction  in  which 
he  viewed  it."  "Four  days  later  he  entered  the  sea  and 
With  great  ceremony  claimed  it  by  right  of  discovery  for 
his  royal  master,  the  King  of  Spain." 

The  nanative  goes  on  to  tell  of  Balboa's  ambi- 
tion to  discover  yet  more  lands;  how  he  caused 
the  timbers  for  four  brigantines  to  be  framed  on 
the  Atlantic  coast;  how  he  compelled  the  natives 
to  transport  these  timbers  to  the  Pacific  Coast; 
how  the  first  lot  of  timbers  was  swept  away  by 
flood;  how  he  again  caused  the  timbers  for 
four  brigantines  to  be  framed  on  the  Atlantic 
coast  and  transported  by  the  natives  to  the  Pa- 
cific to  be  successfully  framed  and  launched. 
This  was  cruel  and  deadly  work  for  the  Indians 
and  "Bishop  Quevado  testified  before  the  Spanish 
Court  that  500  poor  wretches  perished  in  this 
work,  while  Las  Casas  says  the  deaths  were 
nearer  2,000  in  number."  But  Balboa  was  super- 
seded by  Pedro  Arias  de  Avila,  better  known  as 
"Pedrarias."  The  jealousy  of  the  supplanter 
caused  him  to  charge  Balboa  with  treasonable 
conduct  and  after  a  form  of  trial  he  was  con- 
demned and  beheaded  in  the  latter  part  of  1517. 
Thus  was  meted  out  to  him  the  decree  promul- 
gated after  the  ark  rested  on  Mount  Ararat, 
"Whoso  sheddeth  man's  blood  by  man  shall  his 
blood  be  shed." 

The  city  of  Panama  was  commenced  in  August, 
1517,  and  in  September,  1521,  it  was  made  a  city 
by  royal  decree,  with  special  privileges  and  a  coat 
of  arms.  It  became  the  Pacific  terminus  of  a 
line  of  posts  and  a  road  was  at  once  constructed 
via  Cruces  on  the  Chagres  River  to  Acla,  which 
was  the  Atlantic  port  until  the  distinction  and  the 


profit  was,  in  1597,  transferred  to  Porto  Bello. 
This  highway  was  paved  and,  according  to  some 
accounts,  it  was  only  wide  enough  for  riders  and 
beasts  of  burden,  but  Peter  Martyr  says  that  two 
carts  could  pass  one  another  upon  it. 

"The  value  of  this  interoceanic  communication  increased 
every  year.  After  the  conquest  of  Pizarro  vast  quantities 
of  gold  and  silver  were  brought  from  the  mines  of  Peru 
to  Panama,  carried  across  the  Isthmus  on  the  King's 
horses,  kept  for  that  purpose,  and  transported  from  the 
eastern  terminus  of  the  paved  way  in  royal  galleons  to 
Spain." 

"The  importance  of  a  maritime  connection  and  the  dis- 
couraging results  of  the  efforts  to  discover  a  natural  chan- 
nel between  the  two  oceans  suggested  to  many  minds 
the  idea  of  a  ship  canal.  *  *  *  According  to  one 
authority,  Charles  V.  directed  that  the  Isthmus  of  Panama 
be  surveyed  with  this  purpose  in  view  as  early  as  1520. 
In  February,  1534,  a  royal  decree  was  confirmed  directing 
that  the  space  between  the  Chagres  and  the  Pacific  be 
examined  by  experienced  men,  and  that  they  ascertain  the 
best  and  most  convenient  means  of  effecting  a  communica- 
tion between  the  navigable  waters  of  the  river  and  the 
ocean  and  the  difficulties  to  be  met  in  the  execution  of 
such  a  project.  The  Governor,  Pascual  Andagoya,  reported 
that  such  a  work  was  impracticable,  and  that  no  king, 
however  powerful  he  might  be,  was  capable  of  forming 
a  junction  of  the  two  seas  or  of  furnishing  the  means  of 
carrying  out  such  an  undertaking." 

Enough  history  has  now  been  quoted  to  show 
that  the  seed  of  the  Panama  Canal  was  sown  394 
years  before  the  canal  bloomed  into  existence. 
Was  there  ever  another  aquatic  plant  of  such 
slow  growth? 

The  City  of  Panama  was  captured  by  Sir 
Henry  Morgan  in  February,  1671,  and  on  the 
24th  day  of  that  month  it  was  burned.  Two 
hundred  and  forty-one  years  and  one  day  later 
the  present  writer  saw  the  ruins  and  took  pic- 
tures of  some  of  them. 

The  present  city  of  Panama  occupies  a  site 
about  seven  miles  west  of  the  original  city  and  it 
was  commenced  January  21st,  1673.  This  I 
learn  from  the  "Canal  Zone  Pilot." 

But  to  return  to  my  text  book.     On  page  28,  I 

read: 

"No  actual  progress  In  the  way  of  establishing  a  marl- 
time  communication  from  the  Atlantic  to  the  Pacific  had 
been  made  during  the  three  hundred  years  of  Spanish 
occupation.  Baron  Von  Humboldt,  who  visited  New  Spain 
about  this  time  and  took  a  great  interest  in  this  subject, 
deplored  the  lack  of  accurate  knowledge  of  the  physical 
features  of  the  isthmian  country.  *  •  *  The  publica- 
tions of  Humboldt  were  extensively  read  and  revived  the 
interest  of  the  commercial  nations  of  the  world  in  this 
subject.  The  Spanish  Cortes  was  aroused  to  action  and  in 
April,  1814,  passed  a  formal  decree  for  the  construction 
of  a  canal  through  the  peninsula  for  vessels  of  the  largest 
size  and  provided  for  the  formation  of  a  company  to 
undertake  the  enterprise,  but  it  led  to  no  results  and 
Spain's  opportunities  to  obtain  the  glory  of  opening  this 
great  highway  for  the  commerce  of  the  world  terminated 
in  1823  when  the  last  of  her  Central  and  South  American 
provinces  succeeded  in  establishing  their  independence." 

I  could  go  on  quoting  from  the  chronicles  to 
which  I  have  resorted  for  my  ready  made  his- 
tory many  interesting  statements  but  I  do  not 
think  it  well  to  burden  this  paper  with  a  record 
of  all  of  the  abortive  attempts  to  bring  about  the 
building  of  an  Isthmian  Canal  between  1814  and 
1869:  and  I  only  resume  at  the  latter  date  be- 
cause the  data  about  that  period  gathered  by 
Commander  Selfridge  and  reported  to  the  Con- 
gress of  the  United  States  were  brought  to  my 
attention  some  time  in  the  mid-nineties. 

The  demand  for  transportation  facilities 
across  the  Isthmus  became  so  imperative  that 
capitalists  determined  to  build  a  railroad  and 
reap  the  harvest  which  their  shrewdness  fore- 
saw.    In  May,  1847,  one  Mateo  Kline  secured 


30 


THE  PANAMA  CANAL 


a  franchise  for  such  a  railroad  and  in  December, 
1848,  this  franchise  was  transferred  to  Aspin- 
wall, Stephens  and  Chauncy  who,  with  their  as- 
sociates, organized  the  Panama  Railroad  Com- 
pany, commenced  work  in  1849,  and  opened 
the  road  for  traffic  early  in  1855.  The  At- 
lantic terminus  on  Limon  Bay  was  Aspinwall — 
later  the  name  was  changed  to  Colon — and  the 
Pacific  terminus  was  Panama.  The  length  of 
the  road  was  47%  miles.  Tradition  has  it  that 
in  building  this  railroad,  a  life  was  sacrificed 
for  every  cross  tie  in  it,  so  great  was  the  mor- 
tality among  the  workmen.  Were  this  tradition 
true,  it  would  mean  that  the  road  cost  abom 
150,000  human  lives  in  the  six  years  spent  in 
building  it.  In  flat  contradiction  of  the  tradi- 
tion is  the  fairly  well  authenticated  fact  that  at 
no  time  were  more  than  eight  thousand  men 
employed  in  building  the  road.  It  is  interesting 
to  note  that  the  ties  used  in  building  the  Panama 
Railroad  were  of  lignum  vitae,  and  that  they 
were  still  in  use  after  nearly  sixty  years'  serv- 
ice when  the  rising  waters  of  Lake  Gatun  buried 
them  from  sight. 

In  1869  General  Grant  became  President  of 
the  United  States  and  in  his  first  message  to 
Congress  "commended  an  American  canal  on 
American  soil  to  the  American  people." 

"Congress  promptly  responded  to  this  sentiment  by 
adopting  a  joint  resolution  providing  for  further  explora- 
tions of  the  isthmus  by  officers  of  the  Navy,  and  Admiral 
Ammen,  as  Chief  of  the  Bureau  of  Navigation,  was  author- 
ized to  organize  and  send  out  expeditions  for  this  purpose. 
In  March,  1872,  a  further  resolution  was  adopted  for  the 
appointment  of  a  commission  to  study  the  results  of 
the  explorations  and  to  obtain  from  other  reliable  sources 
all  available  information  regarding  the  practicability  of 
the  construction  of  a  canal  across  the  American  continent. 
The  President  appointed  on  this  Interoceanic  Canal  Com- 
mission Gen.  A.  A.  Humphreys,  Chief  of  Engineers,  United 
States  Army;  C.  P.  Patterson,  Superintendent  of  the  Coast 
Survey,  and  Commodore  Daniel  Ammen,  Chief  of  the 
Bureau  of  Navigation  of  the  Navy." 

In  February,  1876,  "after  long,  careful  and 
minute  study  of  the  several  surveys  of  the  var- 
ious routes  across  the  continent,"  this  Commis- 
sion reported 

"that  the  route  known  as  the  'Nicaragua  route'  beginning 
on  the  Atlantic  side  at  or  near  Greytown;  running  by  canal 
to  the  San  Juan  River;  thence  *  *  *  to  *  *  * 
Lake  Nicaragua,  from  thence  across  the  lake  and  through 
the  valleys  of  the  Rio  del  Medio  and  the  Rio  Grande  to 
*  *  *  Brito,  on  the  Pacific  coast,  possesses,  both  for 
the  construction  and  maintenance  of  a  canal,  greater  ad- 
vantages and  offers  fewer  difficulties  from  engineering, 
commercial  and  economic  points  of  view  than  any  one  of 
the  other  routes  shown  to  be  practicable  surveys  sufficient 
in  detail  to  enable  a  judgment  to  be  formed  of  their 
respective  merits. 

This  report  was  not  transmitted  to  Congress 
until  April,  1879,  when  it  was  called  for  by  a 
resolution  of  the  Senate.  It  is  in  print  as  "Sen- 
ate Ex.  Doc.  No.  15  46th  Congress,  First  ses- 
sion." 

Having  back  of  him  French  support,  Lieut. 
L.  N.  B.  Wyse,  in  May,  1876,  entered  into  a  con- 
tract with  the  Columbian  Government  to  build  a 
canal  across  the  territory  of  the  Republic.  In 
May,  1878  this  contract  was  so  modified  and  ex- 
tended as  to  give  the  promoters  the  exclusive 
privilege,  for  a  period  of  ninety-nine  years,  of 
constructing  the  canal  covered  by  the  original 
contract  without  any  restrictive  stipulations 
other  than  those  safeguarding  the  rights  and 
property  of  the  Panama  Railroad.     The  general 


route  of  the  proposed  canal  was  to  be  determined 
by  an  international  congress  of  engineers  to  be 
assembled  not  later  than  .1881. 

Accordingly,  the  International  Scientific  Con- 
gress convened  in  Paris  in  May,  1879,  with  a 
membership  of  139  and  their  decision  was  in 
favor  of  the  route  from  Colon  (Aspinwall)  to 
Panama. 

The  Wyse  concession  was  transferred  to  "La 
Compagnie  Universelle  du  Canal  Interoceanique 
de  Panama,"  better  known  in  the  United  States 
as  the  Panama  Canal  Company.  Ferdinand  de 
Lesseps  was  President.  The  Wyse  concession 
was  purchased  from  its  holders  by  this  new  com- 
pany with  the  high  sounding  name  for  10,000,000 
francs.  The  purchasers  then  proceeded  to  sell 
600,000  shares  of  stock  of  500  francs  each. 

Two  years  were  devoted  to  surveys  and  ex- 
aminations and  preliminary  work.  The  plan 
adopted  was  for  a  sea  level  canal  72  feet  wide  on 
the  bottom  and  a  navigable  depth  of  29.5  feet. 
The  volume  of  excavation  computed  for  this 
canal  was  157,000,000  cubic  yards.  The  center 
line  elevation  at  the  summit  of  the  Culebra  cut 
was  333  feet  above  the  sea  level.  The  cost  of 
this  plan  as  estimated  by  DeLesseps  in  1880  was 
$127,600,000.00  and  the  time  required  for  con- 
struction was  given  as  eight  years.  Work  on  this 
project  continued  until  1887.  By  that  time  De- 
Lesseps had  to  admit  a  fact,  which  had  long  been 
manifest  to  others,  namely;  that  with  the  re- 
sources available,  the  canal  could  not  be  car- 
ried through  at  the  sea  level.  A  provisional 
change  was  made  to  a  lock  type  of  canal  for 
which  the  water  for  the  summit  level  was  to  be 
provided  by  pumping.  Work  under  this  plan 
was  carried  on  until  1889  when  the  company  be- 
came bankrupt  and  was  dissolved  by  a  judg- 
ment of  the  "Tribunal  Civil  de  la  Seine"  on  Feb- 
ruary 4th  of  that  year  and  a  liquidator  was  ap- 
pointed by  the  court  to  take  charge  of  its  af- 
fairs. The  liquidator  gradually  reduced  the 
force  employed  and  suspended  work  May  15th, 
1889. 

He  thereafter  appointed  a  "Commission  d' 
etudes"  composed  of  eleven  Frenchmen  and  for- 
eign engineers  with  Inspector  General  Guille- 
main,  director  of  the  Ecole  Nationale  des  Ponts 
and  Chaussees,  at  its  head.  The  Commission 
made  a  study  of  the  entire  project  and  on  May 
5th,  1890,  submitted  a  plan  for  a  lock  canal 
which  they  estimated  would  cost  $112,500,000.00 
to  complete  and  suggested  that  to  cover  the  cost 
of  administration  and  financing,  this  estimate 
should  be  increased  to  $174,600,000.00.  The  old 
company  and  the  liquidator  had  by  sale  of  stocks 
and  bonds  raised  $246,706,431.68.  The  face  value 
of  the  securities  issued  to  raise  this  money  was 
$435,559,332.80.  The  number  of  persons  hold- 
ing these  securities  was  over  two  hundred  thous- 
and. There  had  been  excavated  in  all  about 
72,000,000  cubic  yards  and  there  had  been  pur- 
chased and  transported  to  the  Isthmus  an  enor- 
mous quantity  of  machinery  and  other  equip- 
ment valued  at  $29,000,000.00.  The  scandals 
connected  with  the  old  company  led  to  the  prose- 


THE  PANAMA  CANAL 


31 


cution  and  conviction  of  DeLesseps  and  other 
prominent  persons. 

In  1894,  the  New  Panama  Canal  Company  was 
organized  and  took  over  all  of  the  canal  property 
except  the  Panama  Railroad  shares  which  were 
held  for  its  benefit.  Work  was  resumed  on  a 
small  scale  and  continued  until  June  30th,  1899, 
by  which  time  the  additional  excavation  amount- 
ed to  about  .5,000,000  cubic  yards  and  the  addi- 
tional expenditures  to  about  $7,000,000. 

The  interest  of  the  United  States  in  an  Isth- 
mian Canal  was  manifested  by  an  act  of  Con- 
gress, approved  March  3rd,  1899,  authorizing  the 
President  to  appoint  that  Commission  from 
whose  report  I  have  quoted.  The  men  selected 
by  President  McKinley  for  this  important 
task  were:  John  G.  Walker,  Rear  Admiral, 
United  States  Navy,  President;  Samuel  Pasco; 
Alfred  Noble;  George  S.  Morrison;  Peter  C. 
Hains,  Colonel  United  States  Corps  of  En- 
gineers; William  H.  Burr,  O.  H.  Ernst,  Lieut.  Col- 
onel, United  States  Corps  of  Engineers;  Lewis  M. 
Haupt;  and  Emory  R.  Johnson. 

The  members  of  the  Commission  convened  in 
Washington  on  June  15th,  1899,  and  immediately 
began  the  work  for  which  they  were  appointed. 
The  scope  of  their  investigations  embraced  the 
following  subjects: 

1.  The  Nicaragua  route. 

2.  The  Panama  route. 

3.  Other  possible  routes. 

4.  Industrial,  commercial  and  military  value  of  an  inter- 

oceanic  canal. 

5.  Rights  and  privileges. 

Later  in  the  division  of  the  duties,  number  one 
was  assigned  to  Mr.  Noble,  Mr.  Burr  and  Colonel 
Hains;  number  two  to  Mr.  Burr,  Mr.  Morrison 
and  Lieut.-Col.  Ernst;  number  three  to  Mr.  Morri- 
son, Mr.  Noble  and  Col.  Hains;  number  four  to 
Mr.  Johnson,  Mr.  Haupt  and  Mr.  Pasco;  and  num- 
ber five  to  Mr.  Pasco,  Lieut.-Col.  Ernst  and  Mr. 
Johnson. 

To  follow  these  gentlemen  through  the  ramifi- 
cations of  their  researches  would  be  to  trans- 
cribe their  report  which  will  not  be  attempted 
and  only  very  prominent  features  of  it  will  be 
noted. 

At  a  very  early  stage  of  their  activities,  the 
Panama  Canal  became  prominent.  The  new 
Panama  Canal  Company  made  overtures  looking 
to  a  sale  of  their  bankrupt  enterprise.  The  Com- 
mission visited  Paris,  sailing  from  New  York, 
August  9th,  1899.  Upon  reaching  Paris,  the 
Canal  Company  displayed  its  wares,  giving  the 
Americans  free  access  and  every  facility  for  ex- 
amining maps,  plans,  profiles  and  all  other  data 
relating  to  the  Canal,  of  which  it  was  possessed. 
Mr.  Maurice  Hutin,  the  Director  General,  and  Mr. 
L.  Choron,  the  chief  engineer,  as  well  as  the 
other  officers  of  the  company,  extended  every 
courtesy  to  the  visitors  and  afforded  all  needed 
assistance.  A  special  meeting  of  the  Comite 
Technique  was  also  called  to  give  the  Commis- 
sioners such  oral  explanations  as  they  might  de- 
sire. After  making  all  needed  investigations  the 
Commission  returned  to  New  York,  sailing  from 
an  English  port  on  September  29th,  1899. 


On  January  6th,  1900,  the  Commission  sailed 
from  New  York  for  Greytown,  Nicaragua. 

As  the  outcome  of  its  studies,  the  Commission 
submitted  its  report  to  the  President  under  date 
of  November  16th,  1901.  This  report  presents 
estimates  of  quantities  and  cost  of  four  "other 
possible  routes"  but  concentrated  its  work  on  the 
Panama  and  Nicaragua  routes.  The  other  pos- 
sible routes  and  their  estimates  of  cost  were: 

The    Sassaedi    route $263,340,000.00 

Aglaseniqua   route   283,440,000.00 

Caledonia   route    320,040,000.00 

San    Bias    route    289,770,000.00 

I  will  digress  here  to  make  a  few  personal 
statements  in  regard  to  the  San  Bias  route,  or 
as  it  was  first  named  to  me  prior  to  the  submis- 
sion of  this  report,  the  Darien  Mandinga  route. 
About  the  year  1896  during  the  construction 
period  of  the  Chicago  Sanitary  &  Ship  Canal,  a 
Chicago  attorney,  named  Bliss,  called  on  me  and 
told  me  that  he  had  become  much  interested  in 
reading  Commodore  Selfridge's  report  on  his 
Isthmian  Canal  investigations  and  he  asked  me  if 
I  thought  a  ship  tunnel,  such  as  Selfridge  sug- 
gested, seven  miles  long  was  practicable.  I  told 
him  that  my  answer  would  depend  upon  the 
character  of  the  material  through  which  the  tun- 
nel was  to  be  bored.  He  could  not  tell  me  what 
material  would  be  encountered. 

Later  on,  Capt.  Robert  Wainwright  of  the 
First  United  States  Cavalry,  called  on  me  one 
morning  and  introduced  his  father-in-law,  Gen- 
eral Charles  Serrell,  a  retired  engineer  officer, 
who  was  desirous  of  seeing  our  work.  I  took 
them  both  over  the  work  and  they  were 
greatly  interested.  As  we  were  returning  to  Chi- 
cago, General  Serrell  said  to  me:  "I  will  tell  you 
now  why  I  wanted  to  meet  you.  I  wish  to  talk 
with  you  about  a  sea-level  canal."  "Yes,"  said  I, 
"a  sea-level  canal  with  seven  miles  of  tunnel  on 
it."  He  seemed  surprised  and  asked  what  I  knew 
about  it.  I  told  him  of  my  talk  with  Mr.  Bliss. 
"Well,"  he  said,  "I  can  tell  you  what  the  moun- 
tain is  made  of;  it  is  granite  and  the  length  of 
the  tunnel  will  be  only  four  and  a  half  miles; 
and  the  distance  from  tide  water  to  tide  water 
only  twenty-one  miles."  He  went  on  to  say  that 
he  had  in  his  possession  the  notes  of  the  survey 
made  for  and  at  the  cost  of  Mr.  Frederick  Kelley 
of  New  York  and  these  notes  he  wished  to  submit 
to  me  and  have  me  examine  them.  He  did  sub- 
mit them  to  me  and  they  were  in  good  preserva- 
tion and  had  all  the  ear-marks  of  authenticity.  I 
also  went  over  estimates  of  quantities  and  unit 
prices  applied  to  the  work. 

General  Serrell  enlisted  the  active  sympathy  of 
Senator  Scott  of  West  Virginia  and  Mark  Hanna. 
I  corresponded  with  Senator  Scott  in  regard  to 
the  matter  but  had  no  communication  with  Sen- 
ator Hanna.  Both  Senator  Scott  and  General 
Serrell  advised  me  that  they  had  aroused  Pres- 
ident McKinley's  interest  in  the  project.  The 
President  died,  Mark  Hanna  died,  and  the  last 
time  I  saw  Senator  Scott  he  was  still  firm  in  his 
conviction  that  the  government  had  made  a  mis- 
take in  not  taking  up  this  project. 


32 


THE  PANAMA  CANAL 


To  go  back  to  the  report  of  the  Commission, 
from  page  51,  I  quote: 

"The  Kelley  examination,  starting  from  the  Pacific,  was 
carried  with  level  and  transit  up  the  Chepo  and  Mamoni 
rivers  across  the  summit  to  a  point  on  the  Carti,  follow- 
ing the  valleys  of  these  streams.  The  Selfridge  surveys, 
starting  from  the  Atlantic  side,  were  carried  with  level 
and  transit  up  the  Mandinga  River,  across  the  divide,  and 
up  the  Nercalagua  River  nearly  to  the  divide,  while  baro- 
metrical reconnaissances  were  made  up  the  Carti  River 
overlapping  the  Kelley  survey.  This  is  the  narrowest 
place  on  the  Isthmus,  it  being  less  than  thirty-one  miles 
from  shore  line  to  shore  line  and  only  about  two-thirds  of 
this  distance  from  the  Atlantic  to  tide  water  in  the  Chepo 
River.  Furthermore,  the  Pacific  harbor  is  quite  as  good 
as  that  at  Panama,  while  Mandinga  Harbor,  in  the  Gulf  of 
San  Bias,  at  the  northern  end  of  the  route,  is  all  that  could 
be  desired." 

The  Commission,  in  investigating  the  cost  of 
the  San  Bias  project,  figured  the  tunnel  at  $22,- 
500,000  per  mile,  an  estimate  far  exceeding  my 
own  computations.  They  used  a  unit  price  of  $5.00 
per  cubic  yard  for  excavation,  which  would  be  all 
right  for  headings,  but  the  great  bulk  of  the  ex- 
cavation should  be  done  for  about  $2.00  per  cubic 
yard.  They  figured  on  lining  the  entire  tunnel 
with  concrete  five  feet  in  thickness,  estimated 
to  cost  $10.00  per  cubic  yard. 

However,  even  at  the  excessive  unit  costs  ap- 
plied in  the  Commission's  report,  the  cost  of  the 
San  Bias  route  would  have  been  close  to  $100,- 
000,000  less  than  the  cost  of  the  Panama  Canal 
has  proven  to  be.  The  question  would  be  debat- 
able as  to  the  comparative  merits  of  4.5 
miles  of  ship  tunnel  and  1.54  miles  of  locks. 
If  the  world  should  need  another  canal  across  the 
American  Isthmus,  the  San  Bias  route  would  be 
very  tempting,  and  owners  of  a  canal  at  sea 
level  with  a  tunnel  of  4.5  miles  and  a  total  length 
of  twenty-one  miles  from  tide  water  to  tide  water 
might  justify  a  claim  of  superiority  for  their 
waterway  over  our  waterway  of  thirty-five  miles 
from  tide  water  to  tide  water  with  an  intermed- 
iate stretch  of  water  elevated  eighty-five  feet 
above  the  sea  level. 

With  this  brief  digression,  I  will  resume  the 
narrative  derived  from  the  report  of  1899-1901. 
That  report  disposes  of  "other  possible  routes" 
and  concentrates  on  Nicaragua  and  Panama.  On 
page  173  of  the  Report,  they  make  a  comparison 
of  these  rival  routes: 

"The  total  length  of  the  Nicaragua  route  from  sea  to 
sea  is  183.66  miles,  while  the  total  length  of  the  Panama 
route  is  49.09  miles.  The  length  in  standard  canal  sec- 
tion and  in  harbors  and  entrances  is  73.78  miles  for  the 
Nicaragua  route  and  36.41  miles  for  the  Panama  route. 
The  length  of  sailing  line  in  Lake  Nicaragua  is  70.51 
miles,  while  that  in  Lake  Bohio  is  12.68  miles.  That  por- 
tion of  the  Nicaragua  route  in  the  canalized  San  Juan  Is 
39.37  miles.  The  preceding  physical  features  of  the  two 
lines  measure  the  magnitude  of  the  work  to  be  done  in 
the  construction  of  waterways  along  the  two  routes." 
On  a  previous  page  is  this  statement: 
"The  Nicaragua  route  has  no  natural  harbor  at  either 
end.  At  both  the  Atlantic  and  Pacific  termini,  however, 
satisfactory  harbors  may  be  created  by  the  removal  of 
material  at  low  unit  prices  and  by  the  construction  of 
protective  works  of  well-established  design.  An  excellent 
roadstead,  protected  by  islands,  already  exists  at  Panama 
and  no  work  need  be  done  there,  either  for  harbor  con- 
struction or  maintenance.  At  Colon,  the  Atlantic  ter- 
minus of  the  Panama  route,  a  serviceable  harbor  already 
exists. 

On  page  174,  we  find  this  summation  of  costs: 
"The  cost  of  constructing  a  canal  by  the  Nicaragua  route 
and  of  completing  the  Panama  canal  without  including  the 
cost  of  acquiring  the  concessions  from  the  different  gov- 
ernments is  estimated  as  follows: 

Nicaragua    $189,864,062.00 

Panama    144,233,358.00 

For  a  proper  comparison,  there  must  be  added  to  the  lat- 


ter the  cost  of  acquiring  the  rights  and  property  of  the 
New  Canal  Company.  This  Commission  has  estimated  the 
value  of  these  in  the  project  recommended  by  it  at 
$40,000,000.00." 

In  the  chapter  devoted  to  maintenance  and 
operation,  the  Commission  arrives  at  the  con- 
clusion that  this  charge  will  be  for 

Nicaragua  route   $3,300,000  per  annum 

Panama  route   2,000,000  per  annum 

Covering  the  negotiations  with  the  officials  of 
the  New  Panama  Canal  Company,  this  statement 
is  presented: 

"Much  correspondence  and  many  conferences  followed, 
but  no  proposition  naming  a  price  was  presented  until  the 
middle  of  October,  1901,  and  after  a  prolonged  discussion, 
it  was  submitted  to  the  Commission  in  a  modified  form,  on 
the  4th  of  November,  to  be  included  in  its  report  to  the 
President.  The  itemized  statement  appears  in  an  earlier 
chapter  of  the  report.  The  total  amount  for  which  the 
company  offers  to  sell  and  transfer  its  canal  property  to 
the  United  States  is  $109,141,500.00.  This  added  to  the 
cost  of  completing  the  work  makes  the  whole  cost  of  the 
canal  by  the  Panama  route  $253,374,858,  while  the  cost  of 
the  Nicaragua  route  is  $189,864,062,  a  difference  of  $63,- 
510,796  in  favor  of  the  Nicaragua  route.  In  each  case  there 
must  be  added  the  cost  of  obtaining  the  use  of  the  terri- 
tory to  be  occupied  and  such  other  privileges  as  may  be 
necessary  for  the  construction  and  operation  of  the  canal 
in  perpetuity.  The  compensation  that  the  different  states 
will  ask  for  granting  these  privileges  is  now  unknown." 

The  final  recommendation  is  stated  thus: 
"After  considering  all  of  the  facts  developed  by  the  in- 
vestigations made  by  the  Commission  and  the  actual  sit- 
uation as  it  now  stands,  and  having  in  view  the  terms 
offered  by  the  New  Panama  Canal  Company,  this  Commis- 
sion is  of  the  unanimous  opinion  that  'the  most  practicable 
and  feasible  route'  for  an  isthmian  canal  to  be  'under  the 
control,  management  and  ownership  of  the  United  States^ 
is  known  as  the  Nicaragua  route." 

This  report  was  transmitted  to  Congress  De- 
cember 4th,  1901. 

But  there  was  to  be  a  sequel  to  this  report.  The 
New  Panama  Canal  Company  realized  that  if  the 
United  States  should  build  the  Nicaragua  Canal, 
the  last  chance  of  securing  salvage  from  its 
wreck  would  be  gone  and  its  officers  lost  no  time 
in  opening  up  negotiations  with  the  Commission, 
the  result  of  which  was  that  on  January  18, 
1902,  the  Commission  addressed  a  further  com- 
munication to  the  President  of  the  United  States, 
the  first  sentence  of  which  reads:  "Sir:  The 
Isthmian  Canal  Commission  has  the  honor  to 
submit  the  following  report  upon  the  proposition 
of  the  New  Panama  Canal  Company  to  sell  and 
dispose  of  all  of  its  rights,  property  and  unfin- 
ished work  to  the  United  States  for  $40,000,000." 
This  was  the  salient  feature  of  the  supplemental 
report  and  it  sealed  the  fate  of  the  Nicaragua 
canal.  The  President  transmitted  the  report  to 
the  United  States  Senate. 

A  description  of  the  prominent  features  of  the 
canal  which  this  Commission  proposed  to  build 
at  Panama  will  be  deferred  until  other  historic 
events  become  a  part  of  this  narrative ;  but  before 
taking  leave  of  the  report  of  1889-1901,  its  value 
to  the  historian  should  be  pointed  out.  With  its 
text  and  its  appendices,  it  fills  a  volume  of  681 
printed  pages  and  it  treats  of  such  a  variety  of 
correlated  subjects  that  it  may  well  be  regarded 
as  exhaustive  in  its  discussion  of  interoceanic 
canals. 

The  act  of  Congress  under  which  the  commis- 
sion, from  whose  report  we  have  quoted  so  freely, 
was  appointed  was  no  doubt  prompted  by  an 
event  which  aroused  the  American  people  to  the 
need  of  an  "American  canal  on  American  soil  for 


THE  PANAMA  CANAL 


33 


American  people."  That  event  was  the  voyage 
of  the  United  States  man-of-war  "Oregon," 
which  sailed  from  San  Francisco  on  the  19th  of 
March,  1898,  and  dropped  anchor  at  Key  West 
May  24th.  She  had  steamed  14,000  miles  in 
sixty-eight  days,  was  in  fighting  trim  at  the  end 
of  the  voyage  and  was  able  to  take  a  prominent 
part  in  the  destruction  of  the  Spanish  fleet  under 
Cervera  on  July  3rd,  1898.  Had  the  Panama  canal 
been  completed  when  the  "Oregon"  made  this 
voyage,  her  distance  travelled  would  have  been  re- 
duced 8,415  miles  and  her  time  reduced  thirty- 
eight  days,  but  a  splendid  bit  of  naval  history 
would  not  have  been  written. 

An  Act  of  Congress,  approved  June  28th,  1902, 
empowered  the  President  to  purchase  from  the 
New  Panama  Canal  Company  all  of  its  rights  and 
properties  enumerated  in  the  report  rendered  by 
the  Commission  on  January  18th  of  that  year  at 
a  cost  not  in  excess  of  $40,000,000,  provided  a 
satisfactory  title  could  be  obtained.  The  Presi- 
dent was  further  authorized  to  acquire  from  the 
Republic  of  Colombia,  upon  reasonable  terms,  a 
snip  of  land  across  the  Isthmus  not  less  than 
six  miles  wide;  "the  control  of  this  right  of  way 
by  the  United  States  to  be  perpetual  and  the  right 
to  construct  the  canal  within  the  boundaries  of 
this  strip  from  the  Caribbean  sea  to  the  Pacific 
Ocean."  The  proposed  canal  to  be  "of  sufficient 
capacity  and  depth  as  shall  afford  convenient 
passage  for  vessels  of  the  largest  tonnage  and 
greatest  draft  now  in  use,  and  such  as  may  rea- 


DETAIL  OF  CONSTRUCTION  WORK. 


CONE  OF  LEAPING  WATER.     GATUN  SPILLWAY. 

sonably  be  anticipated"  with  all  necessary  locks 
and  other  appliances  as  well  as  safe  and  com- 
modious harbors  at  the  termini  and  suitable  pro- 
vision for  defense.  The  sum  of  $10,000,000  was 
appropriated  and  the  President  was  directed  to 
"cause  contracts  to  be  entered  into  for  the  con- 
struction of  the  canal,  its  harbors  and  defenses, 
limiting  the  additional  expenditure  to  the  sum  of 
$135,000,000,  to  be  met  by  future  appropria- 
tions." The  act  also  called  for  the  creation  of 
an  Isthmian  Canal  Commission  to  be  composed 
of  seven  members. 

A  treaty  was  negotiated  by  Mr.  John  Hay,  Sec- 
retary of  State,  with  Mr.  Herran,  representing 
the  government  of  Colombia,  under  the  terms  of 
which  the  United  States  would  acquire  the  right 
to  construct  the  canal.  This  treaty  was  ratified 
by  the  United  States,  but  on  August  12th,  1903, 
was  rejected  by  the  Colombian  Congress.  The 
Department  or  State  of  Panama  had  long  been 
straining  at  the  tether  which  held  it  to  Colombia, 
as  frequent  attempted  revolutions  had  shown. 
The  year  1902  had  been  one  of  internecine  strife; 
one  incident  of  which  was  the  sinking  in  the  Bay 
of  Panama  by  the  insurgents  of  the  Colombian 
gun  boat  "Lautaro."  The  government's  chief  mil- 
itary representative  on  the  Isthmus,  General  Car- 
los Alban,  went  down  with  the  ship.  One  mast 
of  this  vessel  was  still  visible  above  the  surface 
in  1909.  The  strife  of  1900-1902  terminated  on 
the  21st  of  November  1902,  when  a  treaty  of 
peace  between  the  government  and  the  "Lib- 
erals" was  signed  on  board  the  United  States  bat- 


34 


THE  PANAMA  CANAL 


tie  ship  "Wisconsin"  in  the  harbor  of  Panama. 

With  such  a  history  as  a  background,  it  is  easy 
to  understand  the  alacrity  with  which  the  citi- 
zens of  Panama  seized  what  seemed  to  be  the 
psychologic  moment  to  throw  off  the  yoke  of 
Colombia,  as  was  done  on  November  3rd,  1903. 
The  fullest  account  of  the  events  preceding  the 
secession  of  Panama  to  which  I  have  had  access, 
is  found  in  the  "Canal  Zone  Pilot"  on  pages  233- 
35.  The  names  of  the  men  in  the  junta  who  en- 
gineered the  movement  are  given  and  it  is  stated 
that  in  the  last  days  of  August  they  held  a  meet- 
ing in  New  York.  It  is  also  stated  that  one  of 
the  junta,  Mr.  J.  Gabriel  Duque  was  sent  to  Wash- 
ington and  what  purports  to  be  an  interview  with 
Mr.  Hay,  Secretary  of  State,  is  given.  Mr.  Hay 
is  reported  to  have  said  among  other  things,  "Of 
course,  you  understand  that  if  there  is  a  revolu- 
tion, the  United  States  will  keep  the  Isthmus  open 
and  allow  no  fighting  near  the  railway.  If  there 
is  to  be  any,  it  will  have  to  be  done  before  our 
marines  get  there."  Whatever  the  precedent  facts 
may  have  been,  when  the  revolution  occurred, 
the  United  States  Navy  was  represented  at  Colon 
by  the  S.  S.  "Nashville" — Commander  John  Hub- 
bard —  which  arrived  November  3rd.  One 
hundred  and  ninety-two  men,  said  to  be  all  he 
had,  served  to  keep  the  peace  and  on  November 
6th  the  Colombia  troops,  five  hundred  strong, 
whose  arrival  on  November  3rd  on  a  chartered 
steamer  and  a  Colombian  gun  boat  is  described 
in  the  "Canal  Zone  Pilot,"  evacuated  the  Isthmus. 
The  officers  in  command  of  this  repressive  ex- 
pedition went  to  the  City  of  Panama  directly 
after  landing  at  Colon.  These  officers,  Generals 
Tovar  and  Amaya,  were  received  with  military 
honors,  disguising  the  trap  into  which  they  had 
hastened,  and  that  afternoon  they  were  arrested 
and  imprisoned,  but  they  were  released  in  time 
for  their  return  to  Colombia  with  their  com- 
mands. The  new  Republic  was  recognized  by  the 
United  States  on  November  6th,  1903,  just  three 
days  after  the  revolution  was  started. 

Mr.  Philippe  Bunau-Varilla  was  designated  by 
the  new  Republic  as  its  envoy  extraordinary  and 
minister  plenipotentiary  to  the  United  States, 
and  a  treaty  known  as  the  Hay-Bunau-Varilla 
treaty  was  negotiated,  ratified  by  the  Republic  of 
Panama  December  2nd,  1903,  and  by  the  United 
States  on  the  23rd  of  the  following  February. 
Under  this  treaty,  the  United  States  acquired  in 
perpetuity  possession  of  a  zone  of  territory  ex- 
tending across  the  Isthmus,  ten  miles  in  width, 
five  miles  on  each  side  of  the  center  fine  of  the 
canal.  Like  control  and  use  was  also  granted  for 
any  other  lands  or  waters  outside  of  the  zone 
which  might  become  necessary  or  convenient  for 
the  work.  For  the  property  and  rights  so  con- 
veyed, the  payment  by  the  United  States  was 
$10,000,000  and  a  further  annual  payment  to 
begin  nine  years  after  the  ratification  of  the 
treaty,  of  $250,000.00.  On  April  23rd,  1904,  the 
stockholders  of  the  New  Panama  Canal  Company 
formally  authorized  the  sale  of  the  Company's 
property  to  the  United  States  for  the  sum  of 
$40,000,000.     The  transfer  of  this  property  was 


made  May  4th,  1904,  to  Lieut.  Mark  Brooke, 
Corps  of  Engineers,  U.  S.  A.,  detailed  for  that 
duty. 

The  President  appointed  the  Isthmian  Canal 
Commission  authorized  by  the  act  of  June  28, 
1902,  and  the  Commission  held  its  first  meeting 
March  22,  1904.  The  members  of  this  Commis- 
sion were: 

Rear  Admiral   John  C.  Walker,   U.    S.   Navy    (Retired), 

Chairman. 
Major  General  George  W.  Davis,  U.  S.  Army  (Retired). 
Mr.  William  Barclay  Parsons,  C.  E. 
Mr.  William  H.  Burr,  C.  E. 
Mr.  Benjamin  M.  Harrod,  C.  E. 
Mr.  Carl   Ewald  Grunsky,   C.  E. 
Col.  Frank  J.  Hecker, 

On  May  6th,  Mr.  John  F.  Wallace  was  ap- 
pointed Chief  Engineer.  He  assumed  his  duties 
June  1st. 

On  May  9th,  the  President,  through  the  Sec- 
retary of  War,  placed  the  government  of  the 
Canal  Zone  in  charge  of  the  Commission  with 
power  to  enact  and  enforce  such  laws  as  in  its 
judgment  were  required  to  insure  order  and  jus- 
tice. He  appointed  Major  General  George  W. 
Davis,  Governor. 

When  the  transfer  of  the  New  Panama  Canal 
Company's  properties  was  made  that  company 
had  about  seven  hundred  men  at  work.  The  Com- 
mission decided  to  continue  the  work  then  in 
progress  and  to  increase  the  force  gradually.  The 
most  vital  question  confronting  the  Commission 
was  that  of  health.  During  the  French  occupa- 
tion, the  mortality  among  employees  had  been 
appalling. 

Col.  William  C.  Gorgas  had  been  so  successful 
in  producing  sanitary  conditions  in  Havana  dur- 
ing the  American  occupation  that  he  was  selected 
to  carry  on  a  like  work  in  the  Zone. 

Omitting  the  details  of  alignment,  the  lock 
canal  planned  by  the  Commission  of  1899-1901 
may  be  concisely  described  as  follows: 

Total  length  from  six  fathom  line  in  Limon  Bay  to  deep 
water  in  Panama  Bay,  49.09  miles. 


Subdivision  of 

Description 

Miles 

!          Cost 

Channel 

1 

Colon    entrance    and 

500       ft.       wide      side 

2.39 

$      8, 057,707 

harbor 

slope  1  on  3 

From       Harbor       to 

Width    150    ft. 

14.42 

11,099,839- 

Bohio  Locks 

Bohio    Locks 

2    lifts,    double    flight, 
84'   wide,    740'   long, 
35'  deep  over  miter 
sill 

.35 

11,567,275- 

Lake   Bohio 

Elevation      85'     above 
mean  tide  area  38.5 
sq.    mi. 

13.61 

2,952,154 

Obispo  gates 

Designed    for    use    in 
case      of     need      to 
drain    Culebra    cut. 

295,431 

Culebra  section 

Bottom      width      150' 

44,414,460 

side    slopes    1    on    1 

7.91 

Pedro  Miguel  Locks 

2    lifts,    double    flight 
84'   wide,   740'   long, 
35'  deep  over  miter 
sills 

.35 

9.0S1.321 

Pedro   Miguel    Level 

Elevation  of  water  28' 

above  mean   tide 

1.33 

1,192,286 

Miraflores   Locks 

1    lift,    84'    wide,    740' 

long,    35'   deep   over 

.20 

miter  sill 

5,781,401 

Pacific  Level 

For  4.12  mi.  150'  wide, 

to        LaBoca        200' 

8.53 

wide,   4.    41   mi 

12,427,971 

Bohio  Dam 

Earth   dam   with   core 
wall,  top  100'  above 

Gigante  Spillway 

sea   level 
Concrete     dam     2,000' 
long,    crest    at    ele- 

6,369,640 

vation   85' 
Artificial  channel  dis- 

1,209,419 

Pena  Blanca  outlet 

charging  into  Aqua 

Clara    swamp 

2,448,076 

Chagres    diversion 

Artificial  channel 

1,929,982 

Gatun  diversion 

Artificial  channel 

100,000 

Panama  Railroad  di- 

version 

1,267,500 

49.09 

$120,194,465 

Engineering,  police, 

sanitation  and  general 

contingencie 

s,    20% 

24,038,893 

Aggregate, 


$144,233,358 


THE  PANAMA  CANAL 


35 


The  Gigante  Spillway  scheduled  above  was  to 
pass  the  surplus  flood  waters  from  Lake  Bohio 
into  the  Pena  Blanca  swamp.  From  this  swamp 
the  surplus  waters  were  to  flow  via  the  Pena 
Blanca  outlet  into  the  Aqua  Clara  swamp  from 
which  swamp  they  will  flow  on  through  other 
swamps  and  outlets  to  the  sea. 

The  project  thus  epitomized  in  description  was 
ready  for  adoption  by  the  newly  appointed  Isth- 
mian Canal  Commission.  This  Commission  seems 
to  have  been  an  inharmonious  organization, 
judged  by  the  resignations  which  were  soon  in 
order.  Col.  Hecker  resigned  November  16,  1904, 
and  all  the  other  members  tendered  their  resig- 
nations to  take  effect  at  the  pleasure  of  the 
President.  A  new  Commission  was  appointed 
and  entered  upon  its  duties  April  1st,  1905.  The 
new  members  were:  Mr.  Theodore  P.  Shonts, 
Chairman;  Mr.  Charles  E.  Magoon,  Governor  of 
the  Canal  Zone;  Mr.  John  F.  Wallace,  Chief  En- 
gineer; Rear-Admiral  M.  T.  Endicott,  U.  S.  Navy, 
Chief  of  the  Bureau  of  Yards  and  Docks;  Brig. 
General  Peter  C.  Hains,  U.  S.  Army  (Retired) ; 
Col.  O.  H.  Ernst,  Corps  of  Engineers,  U.  S.  Army; 
and  Mr.  Benjamin  Harrod.  Mr.  Wallace  and  Mr. 
Harrod  were  the  only  hold-overs  from  the  first 
board. 

During  the  period  between  the  appointment  of 
the  first  board  and  the  accession  to  power  of  their 
successors,  a  strong  sentiment  in  favor  of  the 
sea-level  type  of  canal  had  sprung  up.  This  sen- 
timent was  fostered  by  the  Chief  Engineer,  Mr. 
John  F.  Wallace,  who  had  convinced  himself  of 
the  practicability  of  constructing  a  seal  level 
canal.  Mr.  Wallace  resigned  June  13,  1905.  Mr. 
John  F.  Stevens  was  chosen  to  succeed  him  on 
July  1st,  1905,  and  immediately  entered  upon  a 
vigorous  discharge  of  his  new  duties. 

Meantime,  Colonel  Gorgas  had  been  most  as- 
siduous in  his  efforts  to  safeguard  the  health  of 
the  inhabitants  of  the  Canal  Zone.  His  war 
against  every  unsanitary  condition  and  his  effort 
to  exterminate  the  deadly  stegomyia  mosquito,  as 
well  as  the  less  deadly  but  still  dreadful  anopheles 
branch  of  the  mosquito  family,  soon  produced  re- 
sults. Waters  troubled  by  mosquitos  were  oiled, 
swamps  were  drained,  cisterns  screened,  until  a 
plentiful  supply  of  pure  water,  drawn  from  gov- 
ernment reservoirs,  was  distributed  over  the  isth- 
mus through  mains  and  laterals  laid  by  gov- 
ernment engineers.  The  domestic  sources  of 
water  supply  and  disease  were  then  done 
away  with.  Houses  were  fumigated,  reno- 
vated and  thoroughly  screened.  Yellow  fever  | 
was  stamped  out  and  for  many  years  the  canal 
zone  has  been  exempt  from  the  scourge  which 
was  so  merciless  in  the  years  of  the  French  oc- 
cupation. 

The  sea  level  idea  appealed  so  strongly  to  the 
American  people  that  a  popular  demand  for  it 
seemed  imminent.  While  the  President  em-  ! 
braced  the  hope  that  a  sea  level  canal  was  prac- 
ticable, he  decided  that  a  change  of  plan  should 
not  be  accepted  until  he  had  secured  for  himself  , 
and  the  Congress  of  the  United  States  the  wisest 
advice  along  engineering  lines  that  was  procur- 


able. He  decided  to  bring  about  the  appointment 
of  an  international  commission  to  make  a  study 
of  the  merits  of  both  types  of  canal,  and  to  that 
end  he  requested  certain  foreign  powers  to  ap- 
point eminent  engineers  to  serve  with  the  Amer- 
icans whom  he  would  select.  King  Edward  ap- 
pointed Mr.  William  Henry  Hunter,  Mem.  Inst. 
C.  E.,  Chief  Engineer  Manchester  Ship  Canal; 
Emperor  William  of  Germany  appointed  Mr. 
Eugen  Tincauzer,  Koniglich  Preussischer  Reg- 
ierungs-  und  Baurat,  Mitglied  der  Regierung  zu 
Konigsberg  i.  Pr.,  Germany;  President  Loubet  of 
France  appointed  Adolphe  Guerard,  Inspecteur- 
General  des  Ponts  et  Chaussees,  France;  and 
E.  Quellennec,  Ingenieur  en  Chef  des  Ponts  et 
Chaussees;  Ingenieur  Conseil  de  la  Cie.  du  Canal 
de  Suez,  France;  Queen  Wilhelmina  appointed  J 
W.  Welker,  Hoofdingenieur-Directeur  van  den 
Ryks-Waterstaat,  the  Netherlands.  The  Amer- 
ican engineers  appointed  by  the  president  to 
serve  with  these  distinguished  foreigners  were: 
George  W.  Davis,  Major  General,  U.  S.  Army,  Re- 
tired, Chairman;  Alfred  Noble,  Chief  Engineer, 
East  River  Division  P.,  N.  Y.  &  L.  I.  R.  R.;  Mr. 
William  Barclay  Parsons,  Chief  Engineer,  New 
York  Subway;  Mr.  William  H.  Burr,  Consulting 
Engineer,  Board  of  Water  Supply,  New  York  City, 
Professor  of  Civil  Engineering  Columbia  Uni- 
versity, Engineering  Expert,  Aqueduct  Commis- 
sioners, New  York  City;  Henry  L.  Abbot,  Briga- 
dier General,  U.  S.  Army,  Retired;  Mr.  Frederic 
P.  Stearns,  Chief  Engineer,  Metropolitan  Water 
and  Sewage  Board,  Boston;  Mr.  Joseph  Ripley, 
General  Superintendent  St.  Marys  Falls  Canal; 
Mr.  Isham  Randolph,  Chief  Engineer  Sanitary 
District  of  Chicago.  John  C.  Oakes,  Captain  Corps 
of  Engineers,  General  Staff,  U.  S.  Army  was  ap- 
pointed Secretary  of  the  Board  of  Consulting  En- 
gineers for  the  Panama  Canal. 

This  Board  convened  in  the  City  of  Washing- 
ton on  the  first  day  of  September,  1905.  A  let- 
ter from  Chairman  T.  P.  Shonts  of  the  Isthmian 
Canal  Commission  advised  us  of  the  data  placed 
at  our  disposal  and  of  the  arrangements  made  for 
our  study  and  investigations.  All  of  the  maps, 
reports  of  investigations  made  on  the  Isthmus 
by  both  French  and  American  engineers,  and  such 
collateral  data  as  were  deemed  pertinent,  had 
been  assembled  for  our  use.  Our  studies  com- 
menced at  once  and  were  pursued  with  assiduity. 
On  September  11,  1905,  on  invitation  of  President 
Roosevelt,  the  Board  made  the  pilgrimage  to 
"Sagamore  Hill,"  the  President's  home  and  sum- 
mer capital  at  Oyster  Bay.  Our  reception  was  cor- 
dial and  we  were  first  entertained  by  a  substantial 
luncheon  presided  over  by  our  host  and  enlivened 
by  a  flow  of  conversation  and  anecdote  that  was 
most  agreeable.  After  luncheon  we  were  as- 
sembled in  a  beautiful  and  spacious  room  (a  re- 
cent addition  to  the  home,  added  for  reception 
purposes)  and  there  addressed  by  the  President. 

His  opening  sentence  was:    "What  I  am  about 
to  say  must  be  considered  in  the  light  of  sugges- 
tion merely,  not  as  direction.    I  have  named  you 
because  in  my  judgment  you  are  especially  fitted 
to  serve  as  advisors  in  planning  the  greatest  en- 


36 


THE  PANAMA  CANAL 


gineering  work  the  world  has  yet  seen;  I  expect 
you  to  advise  me,  not  what  you  think  I  want  to 
hear  but  what  you  think  I  ought  to  hear."  This 
was  followed  by  a  strong  plea  for  a  sea-level 
canal.  Many  good  reasons  were  advanced  in 
support  of  that  type  of  canal.  (For  this  address, 
see  page  12  of  the  report  of  the  Board) .  We  re- 
turned to  Washington  and  resumed  our  studies. 
On  September  27th,  we  visited  the  Wauchussetts 
dam  and  other  important  works  constructed  by 
the  Metropolitan  Water  and  Sewage  Board  of 
Boston. 

On  September  28th,  we  sailed  from  New  York 
for  Panama  on  board  the  S.  S.  "Havana,"  accom- 
panied by  Mr.  T.  P.  Shonts,  General  O.  H.  Ernst, 
Rear  Admiral  Endicott  and  Mr.  B.  M.  Harrod  of 
the  Commission.  The  tenth  meeting  of  the  Board 
was  held  on  board  at  ten  A.  M.  September  30th. 
All  were  present  except  Mr.  Noble,  who  remained 
in  New  York:  his  familiarity  with  the  Isthmus, 
gained  during  his  connection  with  his  studies  of 
the  Isthmian  Canal  Commission,  1899-1901,  made 
further  examination  by  him  unnecessary.  We 
landed  at  Colon  on  the  morning  of  Wednesday, 
October  4th,  and  for  the  next  week  devoted  our 
time  to  a  study  of  the  physical  features  of  the 
chosen  route  and  to  obtaining  the  ideas  of  those 
engineers  on  the  work  whose  experience  and  ob- 
servation served  to  give  value  to  their  views  upon 
the  many  questions  on  which  we  had  to  pass. 
We  gave  the  Chief  Engineer,  Mr.  John  P.  Stevens, 
a  very  exhaustive  examination.  At  its  close  I 
asked  if  he  had  any  suggestion,  any  plan  of  his 
own,  that  he  would  like  to  have  embodied  in  our 
report.  His  reply  was:  "I  suppose  I  am  the  only 
man  in  the  United  States  who  has  not  a  plan  for 
this  canal.  You  gentlemen  tell  me  what  is  to  be 
done  and  I  will  do  it."  He  is  a  man  who  does 
things  and  he  did  them  in  Panama. 

Those  few  days  spent  in  close  contact  with  the 
actual  conditions  to  be  met  with  in  doing  the 
work  and  in  study  of  materials  to  be  encountered 
in  its  execution  served  to  convince  some  of  us 
that  the  sea  level  canal  project  ought  not  to  be 
adopted.  On  the  third  day  out  from  New  York 
on  our  way  down,  the  Chairman  laid  before  the 
Board  a  letter  he  had  received  from  Mr.  C.  D. 
Ward,  enclosing  a  copy  of  his  paper  on  the  "Gatun 
Dam"  which  was  read  before  the  American  So- 
ciety of  Civil  Engineers,  of  which  Mr.  Ward  was 
a  member,  on  May  18th,  1904.  The  arguments  in 
that  paper  appealed  so  strongly  to  Mr.  P.  P. 
Stearns  of  our  Board  that  he  became  a  strenuous 
advocate  of  its  recommendations  and,  today,  the 
Gatun  Dam  stands  in  evidence  of  the  fact  that 
some  of  man's  most  prodigious  creations  have 
been  evolved  from  the  "baseless  fabric  of  a 
dream."  No  single  feature  of  the  project,  as  now 
constructed,  was  subjected  to  more  persistent 
and  hostile  criticism  than  this  earth  dam  which 
has  now  taken  its  place  among  the  "everlasting 
hills." 

Our  time  in  Panama  was  almost  wholly  con- 
sumed by  the  studies  for  which  we  had  come  and 
the  only  relaxation  enjoyed  was  at  a  breakfast 
given  to  the  Board  by  Governor  Magoon  and  a 


formal  call  upon  the  President  of  the  Republic, 
Dr.  Amador.  We  were  received  at  the  Govern- 
ment building  with  distinguished  consideration 
and  our  entrance  was  between  files  of  soldiers  in 
dress  uniforms  and  officers  clad  in  "all  the  pomp 
and  circumstance  of  war,"  who  saluted  us  and 
led  the  way  to  the  reception  room,  where  we 
met  the  President  and  his  Cabinet.  The  Pres- 
ident was  a  man  of  quiet  and  dignified  manners 
and  the  brief  interview  left  a  pleasant  impres- 
sion. 

We  sailed  from  Colon  for  New  York  on  October 
11th,  on  the  ship  on  which  we  had  come.  With 
the  crystalizing  of  our  ideas  and  the  strength- 
ening of  our  convictions  came  vigorous  discus- 
sions of  the  merits  of  the  two  types  of  canal. 
The  five  foreign  members  were  a  unit  for  a  sea 
level  canal.  With  them  stood  General  George 
W.  Davis,  Chairman,  Mr.  William  H.  Burr  and  Mr. 
William  Barclay  Parsons. 

Their  contention  and  our  counter  arguments 
may  be  condensed  into  a  brief  statement,  boiled 
down  from  very  lengthy  discussions  indulged  in 
by  the  advocates  of  each  type  of  canal.  For  the 
sea  level,  the  claim  was  made  that  the  time  of 
passage  through  the  sea  level  channel  would  con- 
sume less  time  than  passage  through  a  lock  canal. 
This,  we  admitted,  would  be  true  until  the  num- 
ber of  vessels  reached  fifteen  per  day  at  which 
time — as  we  demonstrated  to  our  own  satisfac- 
tion— the  time  would  be  equal  for  each  type.  In 
a  channel  of  the  dimensions  which  was  proposed, 
no  two  large  vessels  would  be  allowed  to  pass 
with  both  in  motion ;  one  must  tie  up.  This  meant 
a  loss  of  time  equivalent  to  that  lost  in  lockage. 
In  the  lock  canal,  moreover,  for  eighty-two 
per  cent  of  the  distance  there  would  be  deep,  wide 
water  in  which  the  vessels  could  move  at  sea 
speed,  while  in  the  narrow  sea  level  channel  the 
speed  must  be  reduced  to  six  miles  per  hour  or 
less.  Illustrating  this  discussion,  see  the  follow- 
ing table  taken  from  the  report: 


Type  of  ship 

Distance 

between 

passing 

places 

Type  of 
Canal 

Time  required  for  transit 
across  the  isthmus 

lOshius 
per  day 

15  ships 
per  day 

20  ships 
per  day 

25  ships 
per  day 

30  ships 
per  day 

Type  C,  540 
ft.  by  60  ft.  by 
32  ft 

Type  E.  700 
ft.  by  75  ft.  by 
37  ft 

Miles 

(         5.0 

J.         2.5 

f          5.0 
■<          2.5 

Sea  level . 
...do.... 

Sea  level. 
...do... 
Lock 

Hours 

8  9 
8.6 
9.5 

11.6 
11.1 
10.5 

Hours 

9.6 
9.0 
9.6 

12.8 
11.6 

10.7 

Hours 

10.5 
9.7 
9.7 

14.3 
12.6 
10.8 

Hours 

11.5 
10.3 
9.8 

16.2 
13.6 
10.9 

Hours 

12.9 
11.1 
10.0 

18.9 
14.7 

( 

11.1 

The  capacity  for  traffic  of  the  two  types  was 
discussed.  We  met  the  claim  for  greater  capacity 
in  the  sea  level  by  citing  the  fact  that  in  the  pre- 
vious year,  the  Saulte  Ste.  Marie  lock  canal  had 
passed  36,617,699  tons  in  eight  months  as  against 
11,500,000  tons  through  the  Suez  canal  in  the 
twelve  months  of  1904.  Then  the  question  of  the 
vulnerability  of  the  two  types  was  discussed.  The 
sea  level  advocates  claiming  that  in  time  of  war 
the  locks  could  easily  be  destroyed  by  hostile 
agents.  We  contended  that  forces  could  be  con- 
centrated for  the  defense  of  the  locks  whereas  in 
a  jungle  country,  such  as  this  canal  would  tra- 
verse, vessels  would  be  at  the  mercy  of  guerrillas 
who  could  sink  them  easily.    During  this  discus- 


THE  PANAMA  CANAL 


37 


ONE    OF   TI1F. 
EMERGENCY    DAMS. 

NOTE    MOVABLE 

PARTS     UNDER     THE 

BRIDGE 

STRUCTURE. 


sion,  Mr.  Quellennec  received  a  telegram  advis- 
ing him  that  the  British  harque  "Chatham"  was 
sunken  in  the  Suez  canal,  blocking  traffic.  On 
November  7th,  the  following  cablegram  was  re- 
ceived and  translated  for  us  by  Mr.  Quellennec: 

"Paris,  November  4th,  1905. 
Board  of  Consulting    Engineers,    Panama    Canal,    Wash- 
ington: 

Interruption  to  traffic  occasioned  by  Chatham  exactly 
ten  days.  Number  of  vessels  having  waited  twenty-four 
hours  or  over  to  enter,  53  at  Port  Said  and  56  at  Suez. 
Number  of  vessels  that  entered  canal  within  twenty-four 
hours  after  traffic  had  been  established,  51.  Maximum 
number  of  vessels  that  entered  canal  during  twenty-four 
hours  under  normal  conditions  since  opening  of  canal,  36. 
(Signed)  BONNET." 

So  we  had  in  this  incident  a  demonstration,  in 
time  of  peace,  of  what  could  much  more  easily 
happen  in  time  of  war. 

Of  course,  all  of  the  changes  were  rung  on  the 
danger  to  ships  and  locks  both,  in  that  type  of 
canals  and  our  condensed  answer  is  found  on 
page  91  of  the  report: 

"This  "canal  (St.  Mary's  Falls)  has  been  in  operation  a 
little  more  than  fifty  years  and  a  traffic  aggregating  about 
360,000,000  tons,  net  register,  has  passed  through  it  with 
no  accidents  seriously  obstructing  navigation." 

The  locks,  as  actually  built,  are  equipped  with 


safe-guarding  devices  more  elaborate  and  more 
perfect  than  were  conceived  of  at  the  time  of 
these  discussions.  Of  course,  the  elements  of  cost 
and  time  involved  in  construction  figured  largely 
in  the  discussion.  The  majority  report  gives  its 
estimated  cost  as  $247,021,200.00,  and  the  time 
required  to  complete  as  twelve  to  thirteen  years. 
The  minority  report  placed  the  cost  of  the  lock 
project  at  $139,705,200.00,  and  the  time  required 
to  build  as  nine  years.  This  latter  estimate  of 
time  has  been  justified  by  actual  performance  but 
the  estimate  of  cost  has  been  totally  eclipsed. 

Over  the  relations  of  the  Chagres  river  to  the 
problem,  the  differences  of  opinion  between  the 
proponents  of  the  two  types  of  canal  were  most 
radical.  The  minority  could  not  accept  the  plans 
and  estimates  of  the  majority  for  the  diversion 
and  control  of  that  river  as  being  adequate.  The 
Chagres  river  was,  and  ever  would  have  been,  an 
enemy,  a  perpetual  menace,  to  the  sea  level  canal; 
whereas  it  is  the  friend  and  ally  of  the  lock  canal, 
supplying  the  water  which  alone  made  the  pres- 
ent construction  possible. 

The  issues  between  the  advocates  of  the  two 


SECOND  LOCK 

LEVEL  AT  GATUN. 

CANAL  AND  OCEAN 

IN  THE 

DISTANCE. 


38 


THE  PANAMA  CANAL 


types  of  canal  having  now  been  presented,  a  brief 
description  of  what  was  advocated  is  in  order. 


Bottom    width    of 
channel 


Tabular  Comparison 

Lock  Canal  with         Sea  Level  Canal 
summit    level    at 
elevation   85 


1,000   feet    19.08 

800     "        3.86 

600      "        12.29 

350      "        0.00 

300      "       7.21 

200      "        4.70 

150     "        0.00 

Locks  &  approaches  2.58 

Total    49.72        ~100.00 

Excavation,   cubic   yards. ..  .95,965,000 

Estimated    cost    $139,705,200.00 

Estimated  time  required 

to    build     9 


Length 
Miles 


Percent 
of  route 

38.4 
7.8 

24.7 
0.00 

14.50 
9.4 
0.00 
5.20 


Length 
Miles 


0.00 

0.00 

4.87 

.77 

3.05 

19.47 

20.39 

0.59 


Percent 

of  route 

0.00 

0.00 

9.90 

1.60 

6.20 

39.60 

41.60 

1.20 


49.14  100.00 

231,026,477 
$247,021,200.00 


years       12  to  13  years 

Owing  to  the  fact  that  the  range  in  tide  in 
Limon  Bay  is  about  two  feet  between  extreme 
high  and  low  stages  and  that  the  extreme  range 
in  the  bay  of  Panama  is  twenty-two  feet,  it  was 
conceded  that  a  tidal  lock  at  the  Pacific  end  of 
the  canal  would  be  a  necessity  and  the  majority 
provided  for  such  a  lock  in  their  plans  and  es- 
timates, thereby  admitting  that  an  absolute  sea 
level  canal  was  not  a  possible  creation  on  the 
route  chosen. 

The  minority  departed  from  the  project  of  the 
Isthmian  Canal  Commission  of  1899-1901  in 
everything  but  the  elevation  of  the  summit  level 
water-surface,  which  was  established  at  elevation 
85  ft.  The  Gamboa  dam  site  was  abandoned  and 
the  Gatun  site  adopted.  The  computed  area  of 
the  Lake  of  Gamboa  was  thirty-eight  square 
miles  while  the  area  of  Gatun  lake  is  164  square 
miles.  The  locks  at  Gatun  are  in  three  flights, 
dividing  the  85  feet  of  total  lift  into  three  lifts  of 
28.33  feet  each.  The  lock  dimensions  recom- 
mended were:  usable  width  95  feet,  usable  length 
900  feet,  depth  over  miter  sills,  40  feet.  The  first 
lock  south  of  the  Culebra  Cut  was  located  at 
Pedro  Miguel  with  a  descent  of  thirty-one  feet — 
in  a  single  lift — to  Lake  Sosa,  the  water  surface 
of  which  was  fixed  at  elevation  55  ft.  above  mid- 
tide.  Lake  Sosa  was  to  have  been  created  by  build- 
ing dams  across  the  Rio  Grande  at  LaBoca,  join- 
ing Sosa  hill  on  the  east  to  San  Juan  hill  on  the 
west  side  of  the  river.  Then  Sosa  hill  was  to  be 
joined  to  Ancon  hill  by  a  dam,  and  a  third  dam  was 
to  be  extended  from  Ancon  hill  in  the  direction  of 
Corozal  to  high  ground  on  the  east  side  of  the 
Panama  railroad.  The  site  selected  for  the  Paci- 
fic locks  was  the  west  side  of  Sosa  hill,  two  lifts 
of  thirty-one  feet  each.  All  locks  were  to  be  in 
duplicate. 

In  regard  to  Lake  Sosa  and  the  Pacific  terminal 
locks,  the  Minority  report  says:  (see  pages  78-79) 

"If  for  military  or  other  reasons,  the  location  of  the 
teminal  locks  on  the  Pacific  at  the  shore  line  of  Sosa 
should  be  deemed  inadvisable  and  the  location  at  Mira- 
flores,  three  and  six-tenth  miles  inland,  be  substituted,  the 
cost  of  the  canal  would  be  increased  about  $8,000,000.00." 

Mention  has  already  been  made  of  Mr.  C.  D. 
Ward's  communication  to  the  Board  recommend- 
ing the  construction  of  a  dam  at  Gatun.  A  re- 
print of  Mr.  Ward's  paper,  presented  to  the  Amer- 
ican Society  of  Civil  Engineers  is  given  as  Appen- 
dix I,  page  279  of  the  report.  In  that  paper  he 
speaks  of  the  Gatun  dam  site  having  been  sug- 
gested by  Ashbel  Welch  in  1880.  Major  Cassius 
E.  Gillette,  Corps  of  Engineers,  U.  S.  A.  also 
brought  to  the  attention  of  the  Board  a  paper 


of  his  which  was  printed  in  the  Engineering  News, 
July  27th,  1905,  entitled  "The  Panama  Canal, 
some  serious  objections  to  the  sea  level  plan." 
The  most  elaborate  plans  and  proposals  brought 
before  the  Board,  and  urged  with  much  insistance, 
were  those  presented  respectively  by  Mr.  Lindon 
W.  Bates  and  Mr.  Philippe  Bunau-Varilla.  The 
latter  project  was  for  the  "Straits  of  Panama." 
The  Board  gave  patient  attention  to  the  elabora- 
tion of  their  projects  by  these  two  gentlemen  with 
the  result  that  the  records  of  its  twenty-fifth 
meeting  contains  this  entry: 

"Resolved,  That  after  careful  consideration,  it  is  the 
sense  of  the  Board  that  the  adoption  of  the  plan  of  either 
Mr.  Bunau-Varilla  or  Mr.  Bates  is  not  expedient." 

The  Board  completed  its  labors  and  the  ma- 
jority report  favoring  the  sea  level  canal  was 
signed  by 

George  W.  Davis 

William  Barclay  Parsons 

William  H.   Burr 

William  Henry  Hunter 

Ad.  Guerard 

Eugen  Tincauzer 

J.  W.  Welcker 

B.  Quellennec 

Of  these  signators,  Messrs.  Hunter,  Tincauzer, 
Welcker  and  Quellennec  were  men  who  had  had 
previous  experience  in  canal  construction  and 
operation. 

The  minority  report  recommending  the  lock 
canal  was  signed  by 

Alfred  Noble 
Henry  L.  Abbott 
Frederic  P.  Stearns 
Joseph  Ripley 
Isham  Randolph 

Noble  had  built  the  Poe  locks  at  Sault  Ste 
Marie  and  had  an  intimate  knowledge  of  canal 
requirements.  Ripley  was  Noble's  assistant  and 
later,  as  superintendent  of  the  St.  Mary's  Canal, 
had  the  lock  under  his  charge;  Randolph  had 
built  the  Chicago  Sanitary  &  Ship  Canal,  at  that 
date  the  largest  (not  the  longest)  artificial  water- 
way man  had  ever  built. 

The  report  of  the  majority  is  dated  January 
10th,  1906.  The  report  of  the  minority  is  with- 
out date.  The  Board  held  its  final  meeting  Janu- 
ary 31st,  1906,  in  the  office  of  Mr.  Parsons,  60 
Wall  Street,  New  York.  Present:  The  chairman, 
Messrs.  Noble,  Burr,  Parsons,  Abbot,  Stearns, 
Ripley  and  Randolph.  The  foreign  members  had 
returned  to  their  homes.  Both  reports  were  de- 
livered to  the  Isthmian  Canal  Commission.  That 
Commission  in  turn  transmitted  them  to  the  Sec- 
retary of  War  under  date  of  February  6th,  1906, 
accompanied  by  a  communication  which  ends 
with  this  statement : 

"It  is  our  opinion  that  the  plan  proposed  by  the  minority 
of  the  Board  of  Consulting  Engineers  is  a  most  satis- 
factory solution  of  the  problem  of  an  Isthmian  Canal,  and 
therefore,  we  recommend  that  the  plan  of  the  minority 
be  adopted,  subject,  of  course,  to  such  changes  as  may  be 
found  desirable  during  construction  and  with  the  under- 
standing that  the  works  in  Limon  Bay  be  deferred  for  the 
present.  The  entrance  now  in  use  at  that  place  must  for 
the  present  be  used  in  any  event,  in  order  to  secure  har- 
bor room  for  the  landing  of  supplies  immediately  needed. 
The  question  of  whether  or  not  it  should  be  changed  and 
what  changes  should  be  made  can  better  be  determined 
hereafter." 

(Signed)  T.   P.   Shonts,   Chairman. 

Charles    E.    Magoon, 

Peter  C.  Hains,  Brig.-Gen.  U.  S.  Army 
<  Retired). 

O.   H.   Ernst,   Col.   Corps   Eng. 

B.    M.    Harrod. 


THE  PANAMA  CANAL 


39 


A  minority  report  favoring  the  sea  level  was 
submitted  which  ends  with  these  words: 

"Believing  that  a  sea  level  canal  substantially  accord- 
ing to  the  project  of  the  Consulting  Board  would  best  serve 
the  present  and  future  commerce  of  the  world  and  the 
military  necessities  of  this  nation,  I  have  the  honor  to 
recommend  its  adoption." 

(Signed)  Mordecal  T.  Endicott. 

Mr.  John  F.  Stevens  submitted  a  letter  ending 
thus: 

"I  therefore  recommend  the  adoption  of  the  plan  for  an 
85-foot  summit-level  lock  canal  as  set  forth  in  the  minority 
report  of  the  Consulting  Board  of  Engineers." 

The  Secretary  of  War  forwarded  both  reports 
and  those  of  the  Isthmian  Canal  Commission,  and 
the  letter  of  the  Chief  Engineer,  to  the  President 
with  a  communication  which  concludes: 

"We  may  well  concede  that  if  we  could  have  a  sea  level 
canal  with  a  prism  from  300  to  400  feet  wide,  with  curves 
that  must  now  exist  reduced,  it  would  be  preferable  to 
the  plan  of  the  minority,  but  the  time  and  cost  of  con- 
structing such  a  canal  are  in  effect  prohibitory. 

"I  ought  not  to  close  without  inviting  attention  to  the 
satisfactory  character  of  the  discussion  of  the  two  types 
of  canal  by  the  greatest  canal  engineers  of  the  world,  which 
insures  to  you  an  to  Congress  an  opportunity  to  consider 
all  of  the  arguments,  pro  and  con,  reaching  a  proper  con- 
clusion." 

(Signed)  William  H.  Taft, 

Secretary  of  War. 

Then  comes  the  transmission  by  the  President 
to  the  Congress  of  the  reports  accompanied  by  a 
message  which  ends  with  these  words: 

"The  law  now  upon  our  statute  books  seems  to  con- 
template a  lock  canal.    In  my  judgment,  a  lock  canal,  as 
herein    recommended,    is   advisable.     If   the    Congress   di-   ] 
rects  that  a  sea  level  canal  be  constructed,  its  direction  I 
will,  of  course,  be  carried  out.    Otherwise,  the  canal  will  ' 
be  built  on  substantially  the  plan  for  a  lock  canal  out- 
lined  in   the   accompanying   papers,    such   changes   being 
made,  of  course,  as  may  be  found  actually  necessary,  in- 
cluding possibly  the  change  recommended  by  the  Secre- 
tary of  War  as  to  the  site  of  the  dam  on  the  Pacific  side." 

(Signed)  Theodore  Roosevelt. 

The  White  House,  February  19th,  1906. 

Congress  acted  favorably  upon  the  President's 
recommendation  and  the  task  undertaken  by  the 
minority  of  the  Board  of  Consulting  Engineers 
for  the  Panama  Canal  was  accomplished.  The 
majority  of  the  Isthmian  Canal  Commission,  the 
Secretary  of  War,  the  President  of  the  United 
States,  and  Congress,  were  converted  to  the  true 
faith  of  the  lock  canal  and  the  tide  of  public 
opinion  which  had  set  so  strongly  toward  the  sea 
level  project  reached  its  flood  and  receded. 

The  construction  work,  wisely  and  efficiently 
organized,  was  being  pushed  with  all  the  vigor 
that  a  born  leader  of  men  could  inspire.  The 
sanitary  measures  enforced  by  Col.  Gorgas  had 
banished  the  scourge  of  yellow  fever  and  the  fear 
of  it.  The  work  was  carried  on  by  forces  directly 
employed  by  the  Government,  but  building  the 
canal  under  contract  was  considered  advisable 
and  was  urged  by  Mr.  Stevens,  the  Chief  En- 
gineer. The  method  under  which  bids  were  in- 
vited provided  that  the  Government  should  sup- 
ply the  equipment  and  the  contractor  to  supply 
the  labor  and  supervision  thereof  and  to  be  com- 
pensated on  a  basis  of  percentage  of  cost.  On 
January  13th,  1907,  the  following  bids  were  re- 
ceived : 

George  Peirce  &   Co 7.19  per  cent 

William  J.  Oliver  and  Anson  M.  Bangs 6.75  per  cent 

McArthur-Gillespie    Co 12.50  percent 

North  American  Dredging  Co 28.00  per  cent 

On  February  26, 1907,  the  Isthmian  Canal  Com- 
mission, under  orders  from  the  President,  re- 
jected all  bids.     The  President  gave  his  reasons 


for  this  in  considerable  detail.  In  this  letter,  he 
says:  "Less  than  two  days  ago  I  received  a  letter 
from  Mr.  Stevens  in  which  he  asks  to  be  entirely 
relieved  from  work  on  the  canal  as  soon  as  he 
could  be  replaced  by  a  competent  person  and  that 
person  could  become  familiar  with  the  work.  I 
have  accepted  his  resignation." 

What  were  the  reasons  prompting  this  resig- 
nation? .Two  strong  wills  clashed  and  one  of 
these  strong  wills  had  back  of  it  the  executive 
power  which  resides  in  the  head  of  a  great  nation. 

The  Fourth  Isthmian  Canal  Commission  was 
appointed  March  7th,  1907  and  entered  upon  the 
discharge  of  its  duties  the  ensuing  first  of  April. 
Its  membership  embraced  Lieut.  Col.  George  W. 
Goethals,  Chairman  and  Chief  Engineer;  Major 
David  DuB.  Gaillard;  Major  William  L.  Sibert; 
Civil  Engineer  H.  H.  Rouseau,  U.  S.  N.;  Col.  W.  C. 
Gorgas;  J.  C.  S.  Blackburn  and  Jackson  Smith. 
Joseph  Bucklin  Bishop  was  made  Secretary  of 
the  Commission.  On  July  14th,  1908,  Col.  F.  H. 
Hodges  succeeded  Mr.  Jackson  Smith.  Col. 
Hodges'  designation  was  Assistant  Chief  En- 
gineer. Avoiding  details,  it  is  sufficient  to  state 
that  the  work  was  segregated  into  three  divi- 
sions :  First,  the  Atlantic  Division,  extending  from 
deep  water  in  Limon  Bay  to  and  including  the 
Gatun  Locks  and  Dam,  7.7  miles,  Major  Wm.  L. 
Sibert  in  charge;  Second,  the  Central  Division, 
Major  D.  DuB.  Gaillard  in  charge;  including  the 
Culebra  Cut,  extending  from  Gatun  to  Pedro 
Migul,  31.7  miles;  Third,  the  Pacific  Division,  in- 
cluding the  Pedro  Miguel  and  Miraflores  locks 
and  extending  to  deep  water  in  the  Pacific,  11 
miles,  in  charge  of  Mr.  S.  B.  Williamson,  C.  E. 
The  efficiency  of  this  organization  is  evidenced 
by  the  work  accomplished;  in  1907,  the  excava- 
tion was  15,765,290  cubic  yards;  in  1908,  the 
volume  taken  out,  37,116,735  cubic  yards  and 
that  was  the  maximum  year's  work.  All  previous 
records  of  accomplishment  were  broken  and 
higher  standards  of  efficiency  established.  In 
1908,  the  plans  for  the  canal  underwent  radical 
changes  which  enormously  increased  the  vol- 
umes of  material  to  be  excavated  and  largely  in- 
creased the  volume  of  material  involved  in  lock 
construction.  On  October  23rd,  1908,  President 
Roosevelt  addressed  a  memorandum  to  the  Sec- 
retary of  War  authorizing  him  to  have  the  bottom 
width  of  the  Culebra  cut  increased  from  200  feet 
to  300  feet.  The  report  of  the  Chief  Engineer  for 
1907,  page  five,  says:  "The  locks  are  in  pairs  as 
now  proposed  with  usable  lengths  of  one  thous- 
and feet  and  widths  of  one  hundred  feet."  From 
page  seven  of  the  annual  report  for  1908,  I  quote: 

"The  locks  are  in  pairs  and  since  the  compilation  of  the 
last  annual  report  the  projected  dimension  have  been  in- 
creased so  that  the  width  in  the  clear  will  be  110  feet, 
the  usable  length  remaining  as  heretofore,  1,000  feet.  The 
question  of  increasing  the  width  was  raised  by  the  General 
Board  of  the  Navy  in  a  memorandum  to  the  Secretary  of 
the  Navy  dated  October  29th,  1907,  setting  forth  that  the 
width  of  the  locks  as  now  fixed,  namely  100  feet,  is  in- 
sufficient for  probable  ships  of  future  construction  and  that 
sound  policy  would  dictate  an  increase  to  a  clear  width 
of  110  feet." 

While  the  Commission,  after  due  consideration 
was  of  the  opinion  that  the  width  already  adopted 
for  locks — 100  feet  in  the  clear— was  ample  for 


40 


THE  PANAMA  CANAL 


all  commercial  vessels,  and  sufficient  for  any  bat- 
tleship constructed,  building  or  projected,  it  felt 
that  the  wishes  of  the  Navy,  as  expressed  by  the 
General  Board,  should  be  followed,  there  being 
no  insuperable  obstacles,  and  it  accordingly  rec- 
ommended that  the  project  be  modified  as  de- 
sired. This  modification  was  approved  by  the 
President,  under  date  of  January  15th,  1908. 

While  the  lock  canal  had  back  of  it  the  ap- 
proval of  the  Chief  Executive  and  the  sanction 
of  Congress,  the  agitation  for  a  sea  level  canal 
was  still  kept  up  by  some  of  the  newspapers  and 
by  one  of  the  leading  technical  papers.  The  pro- 
digious accomplishments  in  the  way  of  excava- 
tion shown  by  the  reports  from  the  zone  served 
the  proponents  of  the  sea  level  canal  as  an  argu- 
ment in  its  behalf.  This  agitation  became  so 
serious  that  President  Roosevelt  decided  to  meet 
it  fairly  and,  with  that  end  in  view,  he  arranged 
with  the  President-elect  to  visit  the  Isthmus  and 
take  with  him  an  advisory  Board  of  Engineers. 
Those  whom  he  appointed  were:  James  R. 
Freeman,  James  D.  Schuyler,  Frederic  P.  Stearns, 
Capt.  Henry  Allen,  Allen  Hazen,  A.  P.  Davis 
and  Isham  Randolph.  The  armored  cruiser 
"North  Carolina"  —  Capt  Marshall  —  and  her 
consort,  the  "Montana" — Captain  Reynolds — 
were  detailed  to  take  Mr.  Taft  and  his  Advisory 
Board  to  Panama.  Mr.  and  Mrs.  Taft  and 
our  Board  took  passage  on  the  "North  Caro- 
lina" and  the  "Montana"  acted  as  escort. 
The  start  was  made  from  Charleston,  S.  C. 
on  the  morning  of  January  25th,  1909.  En  route 
for  Charleston,  I  stopped  over  in  Washington  for 
a  few  hours  and  paid  my  respects  to  the  Presi- 
dent. He  then  said  to  me:  "I  do  not  think  you 
will  find  anything  on  the  Isthmus  to  change  your 
mind  about  the  type  of  canal,  but  if  you  do,  I  be- 
lieve you  will  have  the  moral  courage  to  say  so; 
and  you  may  be  assured  that  both  Mr.  Taft  and 
myself  have  the  moral  courage  to  make  any 
change  that  is  justified  by  the  facts." 

We  arrived  in  the  harbor  of  Colon,  January 
29th,  and  were  met  by  Colonels  Goethals,  Gorgas 
and  Hodges,  and  Majors  Sibert  and  Gaillard  and 
Secretary  Bishop.  We  proceeded  to  Gatun  and 
there  effected  a  permanent  organization  by  elect- 
ing Mr.  Frederick  P.  Stearns  chairman  and  Mr. 
Allen  Hazen  secretary.  We  were  on  the  Isth- 
mus eleven  days  and  made  most  critical  and  care- 
ful examination  of  every  phase  of  the  subject 
that  was  the  cause  of  our  being  sent  on  this  mis- 
sion. The  result  was  that  we  were  each  and 
every  one  convinced  that  no  mistake  had  been 
made  when  the  lock  type  of  canal  was  adopted. 

One  incident  occurring  during  out  sojourn  is 
of  special  interest;  namely,  the  opportunity  to 
get  an  idea  of  what  the  harbor  of  Colon  needed 
in  the  way  of  breakwater  protection.  When  the 
International  Board  of  Engineers  was  on  the 
Isthmus,  Limon  Bay  was  as  smooth  as  a  mirror, 
but  on  February  1st  a  Norther  set  in  and  on  the 
next  day  Mr.  Taft  and  his  advisors  saw  a  condi- 
tion which  carried  conviction  that  breakwaters 
ought  to  be  provided  to  make  the  harbor  safe. 


All  of  the  vessels  that  were  in  port  when  the 
storm  broke  had  to  put  to  sea  for  safety. 

Another  item  of  interest  for  entirely  different 
reasons  was  "un  baile"  given  in  honor  of  Mr. 
Taft  (Presidente  electo  de  los  Estados  Unidos  de 
Norte  America)  and  Mrs.  Taft,  by  "El  Presidente 
de  la  Republica  y  la  Senora  Obaldia."  This  func- 
tion took  place  in  the  "Teatro  Nacional"  on  the 
evening  of  February  5th.  From  my  diary,  I  quote : 
"Presidente  and  Mrs.  Obaldia  stood  with  Mr.  and  Mrs. 
Taft  and  endured  a  siege  of  hand-shaking.  After  the 
hand-shaking,  all  of  the  high  dignitaries  went  over  to  the 
stage  area  and,  to  slow  music,  danced  a  very  stately  meas- 
ure with  which  none  of  them  seemed  very  familiar.  Then 
dancing  became  general." 

The  National  Theatre  is  one  of  the  items  in 
which  the  $10,000,000.00  paid  to  Panama  was  in- 
vested. It  is  a  very  beautiful  building  and  one 
well  suited  to  such  a  function  as  the  one  of  that 
evening.  The  feast  was  lavish  and  champagne 
was  in  flood  like  the  Chagres. 

The  return  voyage  commenced  in  the  late  after- 
noon of  February  7th.  The  home  port  was  New 
Orleans.  At  Port  Eads  our  party  was  trans- 
ferred from  the  "North  Carolina"  to  the  scout 
steamer  "Birmingham."  We  reached  New  Orleans 
on  the  afternoon  of  February  11th  and,  leaving 
Mr.  and  Mrs.  Taft  to  enjoy  the  ovation  tendered 
by  the  City  of  New  Orleans,  we  hastened  to 
Washington  and  on  Tuesday,  February  16th.  we 
submitted  our  report  to  President  Roosevelt.  He 
read  it  over  and  promptly,  in  our  presence,  dic- 
tated a  message  of  transmittal  to  Congress.  The 
reports  and  message  put  a  quietus  on  the  hopes 
of  sea  level  advocates. 

We  now  come  to  a  comparison  of  the  estimated 
cost  of  a  lock  canal  submitted  by  the  Minority  of 
the  "Board  of  Consulting  Engineers"  with  the  ac- 
tual cost  thereof  as  shown  by  the  report  of  the 
Isthmian  Canal  Commission  for  1913,  (see  page 
427  to  429.) 

Estimates  of 
Minority   of   Board 
,     .  of   Consult- 

Comparable  Items.  ing  Engineers.  Report  of  1913. 

Construction    account    $134,965,200.00     $185,316,095.75 

Panama    R.    R.    reconstruction..        4,440,000.00  8,656,061.20 

Land    damages    300,000.00  617,262.15 

$139,705,200.00      $194,589,419.10 
Excess    cost    over    estimate    of 

of    comparable    items 54,884.219.10 

$194,589,419.10 

Cost    of    items    not    covered    in   the    Minority    Report: 

Payment  to  New  Panama  Canal 

Co $  40,000,000.00 

Payment    to    Republic    of    Pan- 
ama       10.000,000.00 

Civil    administration     6,393,308.73 

Department    of    Law 44,982.27 

Department    of    Sanitation 16,250,164.93 

Hotels    &    Buildings 10,233,182.16 

Water    &    Sewers 6,878,583.68 

Roads    &    Paving 2,726,932.32 

Operation  &  Equipment  of  Pan- 
ama   Railroad    5,581,388.79 

Purchase,    Improvement    &    Re-  *■ 

pair    of    Steamers 2.680.112.01  .-  i 

Docks    &    Wharves 490,548.16  -/ 

Moving     and     Care     of     French 

Equipment     2.S33.23  -  ' 

Fortifications     3,114,357.52 

Total    items    not    reported    on 

gfneirs ^  .°f  "!""*  *""  $104,396,393.80 

Total     amount     expended $298,985,812.90 

Total    Bond    issue   authorized    by    Congress 375,200,900.00 

Balance  of  issue  available  for  work  in  Panama.      76,215.087.10 

These  are  enormous  figures  and  the  expendi- 
tures have  been  so  made  as  to  leave  no  shadow  of 
reproach  upon  the  administrators  of  the  fund. 
No  peasant  class  in  any  land  laments  the  loss  of 
the  hoarded  earnings  of  their  lives  of  toil,  as  did 


THE  PANAMA  CANAL 


41 


the  peasantry  of  Prance  after  work  was  sus- 
pended in  1889.  No  pround  names  have  been 
humiliated;  and  the  strong  hand  of  the  law  need 
not  to  be  invoked  to  punish  dishonesty  on  the 
part  of  any  administrative  officer. 

The  figures  show  that  the  actual  cost  of  the 
work  accomplished  to  June  30th,  1913,  exceeded 
the  estimates  presented  by  the  minority  of  the 
Board  of  Consulting  Engineers  by  $54,884,219.10. 
How  is  this  discrepancy  to  be  accounted  for? 
Largely  by  the  increased  amount  of  excavation. 
The  total  yardage  to  June  30th,  as  shown  by  the 
reports,  was  203,383,539  cubic  yards.  The  total 
yardage  estimated  by  the  minority  was  104,745,- 
000  cubic  yards,  of  this  amount  95,955,000  was 
channel  prism  excavation.  A  part  of  this  in- 
creased yardage  was  due  to  widening  the  Cule- 
bra  Cut  from  200  to  300  feet.  This  increase  is 
stated  to  have  been  13,000,000  cubic  yards,  which 
amount  added  to  the  53,765,000  computed  for  the 
200  foot  width,  gives  a  total  of  66,765,000  cubic 
yards;  but  the  excavation  reported  to  June  30th, 
1913,  was  93,305,974,  showing  that  the  volume 
of  slides  to  that  date  had  been  26,540,975  cubic 
yards.  The  abandonment  of  the  location  of  the 
locks  and  dams  recommended  by  the  minority  for 
the  Pacific  end  of  the  canal  added  nearly  $8,000,- 
000.00  to  the  cost,  and  the  increased  length  and 
width  and  modern  equipment  of  the  locks  added 
about  $9,700,000.00. 

In  his  report  of  1909,  Colonel  Goethals  gives 


CLEARING  THE  SLIDE. 


A  SLIDE  IN  THE  CULEBRA  CUT. 

quite  an  elaborate  analysis  of  these  differences 
and  he  ends  that  analysis  with  this  statement: 

"This  estimate  shows  that  nearly  50%  more  work  is 
necessary  to  complete  the  canal  than  was  contemplated  by 
the  original  estimate  and  that  the  unit  prices,  due  to  labor 
conditions,  cost  of  materials,  and  gratuities  given  the  em- 
ployes have  been  increased  about  twenty  per  cent." 

But  the  end  is  not  yet.  The  final  reckoning  with 
Culebra  will  only  come  when  the  last  avalanche  of 
mud,  and  stone  engulfed  in  it,  has  been  dredged 
away  and  what  is  left  of  Gold  Hill  and  Contractor's 
Hill  has  reached  the  angle  of  repose.  The  report 
of  the  Board  of  Consulting  Engineers  contains 
126  pages;  of  these  pages  fourteen  are  devoted  to 
the  geology  of  the  Canal  Zone,  prepared  by  Mr. 
Marcel  Bertrand,  Professor  in  the  National  High 
School  of  Mines,  Paris,  in  collaboration  with  Mr. 
Philippe  Zurcher,  Chief  Engineer  of  Bridges  and 
Routes  of  Communications,  of  France.  This  in- 
teresting item  is  taken  from  page  163,  referring 
particularly  to  the  Culebra  Cut. 

"The  examination  of  these  lands  shows  that  they  will 
stand  extremely  well,  and  this  fact  has  been  practically 
proved  by  the  experience  of  the  preparatory  trench 
(cunette),  the  slopes  of  which  have  been  exposed  to  the 
air  for  more  than  two  years.  Even  the  marl,  which,  when 
in  separate  pieces,  disintegrates  and  splits  easily,  resists 
very  well  in  a  mass,  and  may  require,  at  the  most,  some 
local  supports  to  protect  it  from  the  action  of  the  atmos- 
phere." 

The  Isthmian  Commission  of  1899-1901  pro- 
posed to  wall  this  cut  and  carry  the  railroad 
through  it  on  a  terrace  formed  by  the  wall  on  the 
east  side.  Events  have  shown  that  no  wall  that 
could  have  been  built  would  have  stood  up  against 
the  slides. 


42 


THE  PANAMA  CANAL 


In  his  report  for  1913,  page  23,  Col.  Goethals 

says: 

"The  predictions  of  the  geologist  in  the  last  annual  re- 
port with  reference  to  the  Cucaracha  slide,  that  'The  end 
of  activity  of  this  slide  is  now  well  in  sight,  however,  be- 
cause all  loose  surface  stones  and  clay  have  almost  slid  off, 
exposing  several  large  dikes  and  flows  of  basalt  which 
would  successfully  maintain  in  place  most  of  the  remain- 
ing material'  has  not  been  realized." 

While  there  was  much  to  condemn  in  the  bus- 
iness conduct  of  the  French  projectors  of  the 
Panama  Canal,  their  engineers  are  deserving  of 
high  praise.  It  is  my  conviction  that,  if  these 
engineers  had  been  given  the  money  that  was 
raised  ostensibly  to  build,  the  canal,  they  would 
have  accomplished  that  which  they  undertook, 
and  the  commerce  of  the  world  would  have  paid 
its  tolls  to  the  French  Company  and  not  to  the 
American  Government.  These  French  engineers 
had  to  combat  the  physical  problems  that  nature 
put  up  to  them.  They  were  handicapped  by  the 
rapacity  of  their  own  countrymen  and  they  had 
to  meet  the  "yellow  death,"  against  which  the 
medical  science  of  the  day  had  found  no  defense. 
The  triumphs  of  medical  science  made  the  canal 
possible  and  W.  C.  Gorgas  was  the  great  apostle 
of  that  science  who  carried  its  salvation  to 
Panama. 

One  thinks  of  the  army  of  workers  moving  for- 
ward under  the  leadership  of  skilled  and  deter- 
mined men  to  the  final  accomplishment  of  a  great 
work  and  mayhap  forgets  that  it  demanded  abil- 
ity of  a  high  order  to  keep  this  army  properly 


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LOCK  GATE  IN  COURSE  OF  CONSTRUCTION. 


victualled  and  clothed;  conditions  so  essential  to 
the  efficiency  of  the  workers.  How  admirable 
these  conditions  have  been  under  the  Quarter- 
master's department  as  directed  by  Lieutenant 
Colonel  C.  A.  Devol,  U.  S.  A.,  and  by  Major 
Eugene  T.  Wilson,  U.  S.  A.,  of  the  subsistence 
department,  is  a  part  of  the  proud  history  of 
America  in  Panama. 

All  American  engineers  glory,  with  the  Amer- 
ican people,  in  the  achievements  in  Panama  of  the 
men  of  the  Corps  of  Engineers  of  the  United 
States  Army.  In  many  fields,  that  Corps  has 
built  up  and  sustained  a  reputation  for  ability, 
honor,  and  integrity,  which  is  a  glory  to  the  serv- 
ice; but  we  civilian  engineers  would  not  have  our 
countrymen  forget  the  part  that  our  unbrevetted 
fellows  bore  in  the  building  of  the  Panama  Canal. 
Goethals,  Hodges,  Sibert,  Gaillard  will  always 
be  foremost  in  the  thought  when  the  building 
of  the  great  canal  is  under  discussion;  but  I  do 
not  believe  that  they  forget,  or  for  one  moment 
underrate,  the  support  they  had  from  Williamson, 
Goldmark,  Schildhauer,  Zinn,  Saville,  Nichols, 
Cornish  and  others,  who  supplemented  their  ef- 
forts from  start  to  finish.  The  work  stands  as 
a  triumph  of  American  accomplishment;  builded 
into  it  are  American  imagination,  American  cre- 
ative genius,  American  brains,  courage,  persever- 
ance and  a  tithe  of  the  vast  resources  of  our  peo- 
ple; a  work  not  for  ourselves  alone  but  for  all 
the  peoples  of  all  the  climes  "who  go  down  to  the 
sea  in  ships  and  do  business  in  great  waters." 


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DETAIL  OF  FINISHED  LOCK  GATE. 


THE  PANAMA  CANAL 


43 


THE  USE  AND  BENEFITS  OF  THE  PANAMA 
CANAL 

By  Emory  R.  Johnson,  Ph.  D.,  Sc.  D. 

Professor  of  Transportation   and   Commerce,   Uni- 
versity of    Pennsylvania;    Member  of    Public 
Service  Commission  of  Pennsylvania;  Spe- 
cial Commissioner  on  Panama 
Canal  Traffic  and  Tolls, 
1911-13. 

The  Panama  Canal  has  been  constructed  to 
shorten  the  length  and  time  of  ocean  voyages  in 
order  thereby  to  reduce  the  costs  and  rates  of  trans- 
portation, to  increase  the  volume  of  possible  ship- 
ments, and  to  enable  industry  to  develop  with  the 
expansion  of  trade.  The  opening  of  the  canal  to 
the  world's  shipping  makes  this  an  opportune  time 
to  inquire  what  economies  the  waterway  will  effect, 
what  use  will  be  made  of  the  new  route  via  the 
Isthmus  and  how  American  commerce  and  indus- 
try will  be  developed. 

The  people  of  the  United  States  are  interested, 
first  of  all,  in  the  shortening  of  distances  by  ocean 
routes  between  the  two  seaboards  of  the  country  and 
in  the  reduction  of  freight  rates  between  Atlantic 
and  Pacific  ports.  Up  to  the  opening  of  the  canal, 
heavy  traffic  between  the  east  and  west  coasts  of  the 
United  States  continued  to  move  via  the  Straits  of 
Magellan,  although  from  1907  until  stopped  by  the 
revolution  in  Mexico,  package  freight  and  some 
bulky  articles  were  shipped  by  way  of  the  Isthmus 
of  Tehuantepec.  The  large  fleet  which  the  Ameri- 
can-Hawaiian Steamship  Company  employed  in  the 
service  via  Tehuantepec  and  the  vessels  that  were 
operated  between  the  two  seaboards  of  the  United 
Slates  through  the  Straits  of  Magellan  (as  well  as 
numerous  ships  not  previously  in  the  intercoastal 
service)   are  now  using  the  Panama  route. 

The  distance  between  New  York  and  San  Fran- 
cisco via  the  Straits  of  Magellan  is  13,135  nautical 
miles  aa  compared  with  5,262  miles  by  way  of  the 
Panama  Canal,  the  saving  being  7,873  sea  miles. 
The  time  saved  in  making  the  run  from  New  York 
to  San  Francisco  via  Panama  instead  of  by  way  of 
the  Straits  of  Magellan  is  32.3  days  for  a  10-knot 
freight  steamer,  and  26.8  days  for  a  vessel  of  12 
knots  -peed.  A  passenger  vessel  of  16  knots  average 
speed  (which  would,  of  course,  not  be  operated  via 
the  Straits  of  Magellan)  can  make  the  voyage  from 
New  York  to  San  Francisco  in  two  weeks,  or  in 
fifteen  days,  if  a  day  be  spent  at  Panama  to  enable 
passengers  to  see  the  canal  and  the  sights  of  the  City 
of  Panama. 

The  western  section  of  the  United  States  is  hardly 
less  interested  in  a  shorter  route  to  Europe  than  in 
a  reduction  in  the  distance  by  water  to  the  eastern 
part  of  the  United  States.  West  coast  products  are 
exported  largely  to  Europe  and  the  transportation 
costs  by  way  of  the  Straits  of  Magellan  have  been 
heavy.  The  Western  States,  moreover,  import  large 
quantities  of  iron  and  steel,  textiles  and  other  man- 
ufactures and  have  much  to  gain  by  the  more  active 
competition   which   European   manufacturers,   ship- 


ping by  way  of  the  Panama  Canal,  will  be  able  to 
maintain  with  producers  in  the  eastern  part  of  the 
United  States  for  the  trade  of  the  Pacific  seaboard 
and  the  section  which  gets  its  supplies  in  greater  or 
less  share  from  the  west  coast  importers  and  jobbers. 
The  distances  via  the  Panama  Canal  to  San  Fran- 
cisco are  5,666  miles  less  from  Liverpool,  and  5,528 
less  from  Hamburg  than  by  way  of  the  Straits  of 
Magellan,  the  reduction  in  time  of  voyage  for  10- 
and  12-knot  freight  steamers  being  respectively  23 
and  19  days. 

The  export  trade  of  the  west  coast  of  South  Amer- 
ica is  large  in  volume  and  of  growing  importance  to 
the  United  States  and  to  Europe.  For  a  number  of 
years,  2,500,000  tons  of  "nitrate  have  been  shipped 
annually  from  Chile,  four-fifths  of  it  being  sent  to 
Europe  and  one-fifth  to  the  United  States.  There 
are  large  exports  of  Chilean  grain  and  copper,  and, 
after  the  opening  of  the  canal,  a  heavy  tonnage  of 
high  grade  ore  will  be  shipped  from  Chile  to  the 
United  States  and  to  Europe.  At  the  present  time, 
the  west  coast  South  American  import  and  export 
trade  accounts  for  some  4,000,000  tons  of  vessel  en- 
trances and  clearances  at  the  ports  of  Europe  and  the 
eastern  seaboard  of  the  United  States.  Europe  has 
gotten  six-sevenths  of  the  west  coast  South  American 
trade  and  the  United  States  only  one-seventh  under 
conditions  that  have  prevailed  in  the  past.  It  is  ex- 
pected that  the  United  States  will,  as  the  residt  of 
the  opening  of  the  canal,  be  able  gradually  to  in- 
crease this  percentage  of  the  trade  of  western  South 
America. 

Practically  all  of  the  trade  of  the  eastern  part  of 
the  United  States  with  that  of  western  South  Amer- 
ica will  be  handled  by  way  of  the  Panama  Canal. 
The  distance  from  New  York  to  the  principal  ni- 
trate port  has  been  reduced  5,139  miles,  and  the 
time  for  10-knot  steamers  has  been  shortened  21  days 
by  the  construction  of  the  canal.  Valparaiso  has 
been  brought  3,747  miles,  and  for  10-knot  steamers 
15  days,  nearer  New  York  by  the  opening  of  the 
canal.  Europe  naturally  will  be  assisted  less  than  the 
eastern  part  of  the  United  States  in  trading  with 
western  South  America,  by  the  use  of  the  Panama 
Canal;  but  Europe  will  be  about  3,000  miles  nearer 
the  nitrate  deposits  and  1,500  miles  nearer  the  grain 
fields  of  Chili  in  the  future  than  she  has  been  in  the 
past.  A  10-knot  freight  steamer  will  be  able  to  make 
the  run  from  Iquique  to  Liverpool  and  Hamburg  in 
11  days  less  time  via  the  Panama  Canal  than  by  way 
of  the  Straits  of  Magellan.  From  Valparaiso  to  Liv- 
erpool the  saving  in  time  by  the  canal  will  be  about 
6  days. 

In  building  the  Panama  Canal  the  people  of  the 
United  States  were  concerned,  first  of  all,  with  the 
reduction  in  the  cost  of  transportation  between  the 
Atlantic  and  Pacific  seaboards  of  the  country.  For 
several  years  prior  to  the  opening  of  the  canal,  most 
of  the  freight  shipped  by  water  between  the  two  sea- 
boards of  the  United  States  was  transferred  across 
the  Isthmuses  of  Tehuantepec  and  Panama,  the 
larger  share  of  the  tonnage  being  shipped  via  Te- 
huantepec. The  agreement  which  the  American- 
Hawaiian  Steamship  Company  made  with  the  Mex- 
ican National  Railway  in  1907  provided  that  one- 
third  of  the  through  freight  rate  between  the  two  sea- 


44 


THE  PANAMA  CANAL 


boards  should  be  paid  to  the  railroad  company  for 
transferring  freight  from  the  vessel  on  one  ocean 
across  the  Isthmus  and  into  the  hold  of  the  vessel 
on  the  other  ocean.  It  is  reported  that  the  Mexican 
National  Railway  received  on  the  average,  $3.50  per 
ton  of  2,000  lbs.  for  its  service.  The  cost  of  trans- 
ferring freight  from  vessel  to  vessel  across  the  Isth- 
mus of  Panama  probably  has  been  about  $3.00  per 
cargo  ton.  This  cost  of  $3  to  $3.50  per  ton  of  2,000 
lbs.  for  transferring  freight  across  the  Isthmus  is 
equivalent  to  $6  or  $7  per  ton  when  calculated  upon 
the  net  tonnage  of  the  vessels  employed  in  the  trade, 
for  the  reason  that  modern  freight  steamers  ordi- 
narily carry  two  tons  of  cargo  for  each  net  vessel  ton. 
The  tolls  fixed  by  President  Taft  in  1912  are  $1.20 
per  net  ton,  or  about  one-fifth  of  the  saving  effected 
by  the  canal  in  the  cost  of  transportation  between 
the  two  seaboards  of  the  United  States. 

The  carrier  is  interested  in  the  reduction  in  the 
cost  of  transportation ;  the  shipper  is  concerned  with 
the  freight  rates.  That  the  canal  will  largely  reduce 
the  cost  of  transportation  between  the  two  seaboards 
of  the  United  States  and  will  reduce  the  cost  of 
handling  freight  between  the  United  States  and  the 
western  coast  of  South  America,  Australia  and  the 
Orient  north  of  Honkong,  is  certain.  As  regards 
the  freight  rates  on  traffic  from  the  United  States 
to  foreign  countries,  it  is  probable  that  competition 
will  give  shippers  most  of  the  benefit  of  the  reduction 
in  the  cost  of  transportation ;  but  in  all  ocean  serv- 
ices, particularly  in  the  line  traffic  between  the  two 
seaboards  of  the  United  States,  the  extent  to  which 
the  shippers,  instead  of  the  carriers,  gain  from  the 
reduction  in  the  cost  of  transportation  depends  upon 
the  ability  of  the  carriers,  by  agreements,  to  main- 
tain rates  above  the  level  to  which  the  charges  would 
be  forced  by  unrestricted  competition. 

In  this  connection  the  fact  is  to  be  borne  in  mind 
that  most-  manufacturers  and  traders  shipping  goods 
between  the  two  seaboards  of  the  United  States,  via 
the  canal,  will  be  served  by  regular  steamship  lines ; 
only  a  comparatively  small  number  of  exceptionally 
large  producers  will  dispatch  goods  in  full  vessel 
cargoes  in  ships  which  they  own  or  charter.  With 
the  exception  of  lumber,  east-bound,  coal,  west- 
bound, and  occasional  large  shipments  of  heavy  steel 
products,  most  of  the  traffic  will  be  handled  in  units 
of  less  than  vessel  loads;  and  the  service  desired  by 
shippers  will  be  that  afforded  by  the  regular  lines, 
of  which  there  will,  in  all  probability,  be  several  be- 
tween New  York  and  San  Francisco,  and  one  or 
more  from  each  of  the  "out  ports,"  such  as  Boston, 
Philadelphia  and  Baltimore. 

In  so  far  as  traffic  is  handled  in  chartered  vessels 
or  in  ships  belonging  to  the  owners  of  the  goods 
transported,  shippers  may  be  expected  to  get  the 
entire  saving  in  the  cost  of  transportation  resulting 
from  the  use  of  the  canal ;  but  the  rates  of  the  regu- 
lar steamship  lines  will  be  fixed  by  agreements  of  the 
rival  carriers;  and  the  history  of  steamship  confer- 
ences shows  clearly  that  competing  steamship  lines 
will  be  able,  by  means  of  their  conference  agree- 
ments, effectively  to  regulate  their  competitive  serv- 
ices and  charges.  The  services  of  the  several  lines 
will  be  distributed  among  the  various  ports.  The 
rates  between  any  two  termini  may  be  expected  to 


be  the  same  by  all  lines  for  similar  services;  and,  in 
general,  the  rates  fixed  in  the  conference  agreements 
may  be  expected  to  be  maintained  at  such  a  level 
below  the  general  schedule  of  transcontinental  rail- 
road charges  as  the  managers  of  the  steamship  lines 
find  by  experience  can  be  maintained,  and  yet  se- 
cure the  volume  of  traffic  required  to  supply  the  ves- 
sels with  the  requisite  traffic.  Rates  by  water  will 
not  be  all  the  traffic  might  bear,  but  will  be  what 
the  shippers  can  and  will  pay  for  transportation  by 
water  instead  of  transportation  by  rail.  Rates  by 
water  as  well  as  by  rail  will  be  fixed  with  reference 
to  what  the  traffic  will  bear. 

If  this  be  true — and  it  unquestionably  is  sound 
transportation  economics — -the  people  of  the  United 
States  will  be  obliged,  in  order  to  secure  the  benefits 
of  lower  transportation  charges  to  be  obtained  from 
the  Panama  Canal,  to  regulate  the  charges  and  serv- 
ices of  the  intercoastal  carriers  by  applying  to  those 
carriers  the  general  principles  of  regulation  that 
have  been  successfully  applied  to  rail  carriers.  The 
rules  applicable  to  the  regulation  of  carriers  by  water 
are  not  identical  with  the  rules  applicable  to  rail- 
roads, but  the  general  principles  to  be  followed  are 
the  same  in  both  instances. 

The  most  concrete  measure  of  the  commercial  use- 
fulness of  the  Panama  Canal  will  be  the  volume  or 
tonnage  of  shipping  using  the  waterway  each  year. 
The  probable  traffic  of  the  Panama  Canal  has  been 
calculated  with  exceptional  care.  For  six  years,  end- 
ing with  1898,  the  Panama  Canal  Company  kept  a 
record  of  vessel  movements,  from  which  the  com- 
pany was  able  to  calculate  the  tonnage  of  ships  that 
would  have  used  a  Panama  Canal  had  one  been  in 
existence.  Again,  in  the  years  1899  to  1901,  the 
Isthmian  Canal  Commission  made  an  elaborate  sta- 
tistical investigation  of  the  tonnage  of  available  canal 
traffic.  The  tonnage  figures  arrived  at  by  the  French 
company  and  by  the  Isthmian  Canal  Commission 
showed  that  had  an  isthmian  canal  been  in  exist- 
ence in  1899  the  tonnage  using  the  waterway  would 
have  amounted  to  5,000,000  net  (vessel)  tons.  This 
investigation  by  the  Isthmian  Canal  Commission 
was  made  under  the  direction  of  the  author  who, 
eleven  years  later  as  special  commissioner  on  Pan- 
ama Canal  traffic  and  tolls,  made  another  equally 
careful  statistical  study  of  the  tonnage  of  shipping 
that  would  have  used  the  canal  had  one  been  in  ex- 
istence in  1910.  During  the  eleven  years  interven- 
ing between  the  two  investigations,  the  available  traf- 
fic had  increased  from  5,000,000  to  8,328,000  tons. 
Inasmuch  as  it  is  doubtless  safe  to  assume  that  the 
rate  of  increase  that  had  prevailed  from  1898  to  1910 
will  probably  continue,  it  seems  fairly  certain  that 
the  tonnage  of  the  Panama  Canal  during  1915  will 
amount  to  about  10,500,000  net  tons.  With  an  in- 
crease of  only  60  per  cent  during  the  first  decade, 
which  is  12  per  cent  less  than  the  rate  of  increase 
in  the  traffic  of  the  Suez  Canal  during  the  decade 
ending  in  1912,  the  tonnage  of  shipping  using  the 
Panama  Canal  in  1925,  at  the  end  of  the  first  ten 
years  of  its  operation,  will  amount  to  17,000,000  net 
tons.  Those  to  whom  this  seems  to  be  a  large  ton- 
nage may  well  compare  it  with  the  traffic  of  the  Suez 
waterway,  which,  in  1912,  was  used  by  5,373  ships 
having  a  net  tonnage  of  20,275,000.     The  traffic 


THE  PANAMA  CANAL 


45 


of  the  Suez  Canal  in  1925  will  doubtless  exceed  30,- 
000,000  net  tons  of  shipping. 

The  tolls  for  the  use  of  the  Panama  Canal — $1.20 
per  net  ton  with  40  per  cent  reduction  for  vessels 
in  ballast — were  decided  upon  after  careful  consid- 
eration had  been  given  to  the  effect  of  the  tolls  upon 
the  traffic  and  usefulness  of  the  canal.  It  would 
have  been  undesirable  to  have  imposed  tolls  high 


coast  of  North  America  and  Europe,  will  be  much 
greater  than  the  tolls  that  have  been  established. 

The  payment  made  by  vessels  for  the  use  of  the 
canal,  and  consequently  the  revenues  received  by  the 
United  States  Government  from  the  canal,  are  de- 
termined by  two  factors — the  rate  of  tolls  and  the 
tonnage  upon  which  the  charges  are  levied;  accord- 
ingly, the  Panama  tonnage  rules  are  of  as  much 


TOWING  RUNWAY 
BETWEEN  THE 

LOCKS  AT 
GATUN. 


enough  to  have  diverted  from  the  canal  to  the  Straits 
of  Magellan  any  considerable  portion  of  the  large 
tonnage  moving  between  Chile  and  the  United 
States  and  Europe.  It  would  also  have  been  a  mis- 
take to  have  placed  the  tolls  at  a  figure  that  would 
have  lessened  the  use  of  the  canal  by  the 
vessels  operating  between  the  eastern  seaboard 
of  the  United  States  and  Australia,  and  also  the  ship- 


importance  to  shipowners  as  is  the  rate  of  tolls.  The 
Panama  tonnage  rules  prescribed  by  the  President 
were  formulated  after  a  thorough  study  had  been 
made  of  the  merits  and  delects  of  the  several  na- 
tional tonnage  rules  and  of  those  in  force  at  the 
Suez  Canal.  As  prescribed,  the  Panama  rules  are 
more  nearly  like  those  of  the  Suez  Canal  Company 
than  those  by  which  the  registered  tonnage  of  Amer- 


UPPER 
SIDE  OF   GATUN 

SPILLWAY. 

CONE   OP    WATER 

IN  1)1  ST  ANTIC. 


ping  engaged  in  the  trade  between  the  eastern  sea- 
board of  the  United  States  and  the  Oriental  ports 
from  Manila  and  Hongkong  northward.  The  sav- 
ing effected  by  the  canal  for  the  traffic  between  the 
two  aeaboards  of  the  United  States  and  between  the 
eastern  seaboard  of  the  United  State-  and  the  west 
coast   of  South   America,  and  between  the  western 


ican  ships  i-  determined.  It  is  unfortunate  that  the 
American.  British,  French,  German,  Suez  and  other 
tonnage  rules  are  not  uniform.  As  a  matter  of  fact. 
tin  v  differ  in  important  details,  those  of  the  British 
Government,  under  the  influence  of  British  shipown- 
ers, having  provided  for  an  especially  low  net  ton- 
nage as  compared  with  gross  tonnage. 


46 


THE  PANAMA  CANAL 


The  gross  tonnage  of  a  vessel,  possibly  it  should 
be  explained,  is  the  measure  of  the  entire  closed-in 
capacity  of  the  ship;  the  net  tonnage  is  the  entire 
closed-in  capacity  minus  the  spaces  occupied  by  ma- 
chinery, fuel,  and  housings  for  the  crew.  A  vessel 
ton,  gross  or  net,  has  nothing  to  do  with  weight,  but 
is  100  cubic  feet  of  space.  A  vessel  of  5,000  tons, 
net,  is  a  vessel  of  500,000  cubic  feet  of  capacity  avail- 
able for  the  storage  of  freight  or  for  the  accommoda- 
tion of  passengers. 

The  application  of  the  Panama  rules  to  the  meas- 
urement of  vessels  will  give  vessels  a  somewhat 
smaller  net  tonnage  than  ships  would  have  if  meas- 
ured by  the  Suez  rules.  The  Panama  net  tonnage  will 
be  slightly  in  excess  of  the  registered  tonnage  of 
American  vessels,  and  considerably  larger  than  the 
net  tonnage  of  most  vessels  under  the  British  or 
German  flags.  The  Panama  rules  were  drafted 
with  a  view  to  establishing  for  the  Panama  Canal  as 
scientific  a  set  of  rules  as  could  be  formulated.  It 
is  to  be  hoped  that  the  Panama  rules  will  remain  un- 
changed, and  that  they  may  have  the  effect  ulti- 
mately of  bringing  about  a  greater  degree  of  uni- 
formity in  the  different  tonnage  rules  now  applied  to 
the  measurement  of  vessels. 

The  economies  due  to  the  use  of  the  Panama 
Canal,  especially  for  the  traffic  between  north  Atlan- 
tic countries  and  the  countries  of  western  South 
America,  will  result  not  only  from  the  shortening  of 
distance  and  time  of  ocean  voyages,  but  also  from 
reducing  the  fuel  expenses  of  vessels  engaged  in  the 
traffic.  There  is  no  coal  in  eastern  South  America, 
and  that  on  the  west  coast  is  of  poor  quality.  Ves- 
sels trading  between  Europe  and  the  west  coast  of 
South  America  by  way  of  the  Straits  of  Magellan 
have  to  take  on  large  quantities  of  fuel  for  the  long 
run  around  to  the  west  coast  of  South  America, 
thereby  reducing  the  space  available  for  cargo  and 
thus  the  earning  ability  of  vessels.  Coal  will  be 
relatively  inexpensive  at  the  Panama  Canal,  where 
it  can  be  sold  by  the  Government,  without  loss,  at  $5 
per  ton.  The  coaling  stations  at  the  canal  will  be 
largely  used  by  merchant  vessels,  and  in  the  traffic 
with  western  South  America  the  fuel  expenses  will 
thereby  be  much  reduced.  Indeed,  the  reduction  in 
fuel  expenses  will  cause  the  Panama  route  to  be 
taken  by  vessels  from  Europe  to  Santiago,  Chile. 
even  though  the  tolls  charged  at  Panama  somewhat 
exceed  the  saving  which  vessels  can  make  by  taking 
the  Panama  route  instead  of  the  one  via  the  Straits 
of  Magellan. 

It  is  interesting  to  note  that  vessels  trading  between 
New  York  and  Australia,  or  between  New  York  and 
Manila,  will  find  fuel  expenses  via  Panama  appre- 
ciably less  than  by  way  of  the  Suez  Canal.  Coal  can 
profitably  be  sold  by  the  United  States  Government 
at  Cristobol  for  $1.25  less  per  ton  than  the  price  now 
charged  at  Port  Said.  The  studies  that  have  been 
made  of  fuel  expenses  via  Panama  indicate  clearly 
that  the  lower  fuel  cost  via  the  American  isthmus 
will  be  of  much  assistance  to  the  Panama  route  in 
competition  with  routes  by  way  of  the  Straits  of  Ma- 
gellan and  the  Suez  Canal. 

The  studies  that  have  been  made  of  available  canal 
traffic  did  not  take  into  consideration  the  new  traf- 


fic that  will  be  able  to  move  as  the  result  of  the  open- 
ing of  the  canal.  In  the  past,  the  rich  beds  of  Chil- 
ean iron  ore  have  remained  unworked  because  the 
cost  of  transporting  the  ore  to  Europe  and  the  Unit- 
ed States  was  prohibitive.  The  prospective  opening 
of  the  canal  caused  the  Bethlehem  Steel  Company  to 
construct  a  fleet  of  large  ore  carriers  which  have 
already  begun  to  bring  the  ore  from  Chile  to  the 
United  States.  Some  of  the  Chilean  ore  will  also  be 
taken  to  Europe.  All  of  this  traffic  will  pass  through 
the  Panama  Canal.  Prior  to  the  opening  of  the 
canal,  only  a  small  quantity  of  the  lumber  from 
Washington  and  British  Columbia  could  be  mar- 
keted in  the  eastern  part  of  the  United  States;  with 
the  reduced  cost  of  transportation  via  the  Isthmus, 
it  is  expected  that  a  large  trade  in  west  coast  lumber 
will  be  carried  on  by  merchants  who  distribute  lum- 
ber from  Philadelphia,  New  York  and  other  At- 
lantic ports.  To  some  extent,  this  west  coast  lumber 
will  supplant  the  lumber  from  the  Southern  States, 
but  in  larger  measure  the  west  coast  lumber  will  sup- 
plement that  from  the  South. 

The  Panama  Canal  will  enable  both  the  inter- 
coastal  and  the  foreign  trade  of  the  United  States 
to  be  carried  on  under  more  favorable  conditions 
than  have  prevailed  in  the  past.  It  is  too  early  to 
measure  in  detail  the  commercial  effects  of  the  Pan- 
ama Canal ;  it  is  certain,  however,  that  the  influence 
of  the  canal  will  ultimately  be  far  reaching.  The 
American  people,  however,  must  not  expect  the 
canal  to  revolutionize  the  foreign  trade  of  the  United 
States.  The  canal  will  give  the  people  of  this  coun- 
try an  opportunity  to  trade  with  western  South 
America  and  with  trans-Pacific  countries  under  more 
favorable  conditions  as  regards  length  of  ocean 
routes  and  transportation  costs,  but  economies  in 
transportation  will  not  alone  determine  whether  the 
trade  of  Pacific  countries  will  be  mainly  with  Eur- 
ope or  with  the  United  States.  Europe  has  the  lead 
of  the  United  States  in  the  commerce  of  Pacific  coun- 
tries. The  exporters  from  Great  Britain,  Germany 
and  other  European  countries  are  served  by  numer- 
ous steamship  lines  and  by  a  vast  tonnage  of  other 
available  shipping.  The  financial  and  banking  rela- 
ions  of  Pacific  countries  are  mainly  with  Europe.  The 
merchants  of  Great  Britain,  Germany,  Belgium  and 
France  have  long  established  trade  relations  with  the 
countries  of  the  Pacific.  European  merchants  have 
branch  houses  or  agents  in  South  American,  Aus- 
tralian and  Asiatic  ports.  It  will  take  time  to  trans- 
fer the  bankng,  merchandising  and  trading  rela- 
tions of  South  American  and  trans-Pacific  coun- 
tries from  Europe  to  the  United  States. 

In  order  to  secure  the  benefits  obtainable  from  the 
opening  of  the  Panama  Canal,  it  will  be  necessary 
for  the  American  bankers,  manufacturers  and 
traders  to  be  alert;  and  it  will  also  be  necessary 
for  the  United  States  Government  to  formulate  a 
broader  commercial  policy  than  has  thus  far  pre- 
vailed. The  Federal  Government  must  seek  by  prac- 
tical measures  to  develop  a  larger  American  mer- 
chant marine  in  the  foreign  trade,  to  facilitate  by 
liberal  legislation  the  growth  of  international  trade, 
and  by  favorable  banking  laws  to  strengthen  the 
financial  position  of  the  United  States  among  com- 
mercial nations. 


THE  PANAMA  CANAL 


47 


THE  PANAMA  CANAL  AND  THE  RAILROADS. 
By  John  Maurice  Clark 

Among  the  many  questions  raised  by  the  open- 
ing of  the  Panama  Canal,  not  the  least  interest- 
ing will  be  the  effect  of  this  great  new  waterway 
on  the  greater  common  carriers,  the  railways,  to 
which  it  will  appear  in  the  two-fold  guise  of  team- 
mate and  competitor.  It  will  develop  some  new 
traffic  in  which  the  railways  will  have  a  share; 
it  will  take  some  of  their  present  traffic  away 
from  them,  and  some  traffic  will  be  shifted  from 
its  present  course,  and  will  run  in  new  channels. 
All  this  will  bring  gains  to  some  carriers,  pos- 
sibly losses  to  others,  while  to  most  it  will  bring 
gain  and  loss  commingled. 

We  expect  an  increase  in  our  export  trade  to 
the  west  coast  of  South  America  and  the  Orient. 
Exports,  moreover,  must  be  paid  for  with  im- 
ports. Now  the  greater  part  of  the  exports  and 
imports  must  be  carried  by  rail,  some  distance  at 
least,  and  the  profits  on  this  business  will  be  one 
of  the  benefits  which  the  Panama  Canal  will 
bring  to  the  railroads.  For  much  of  this  com- 
merce, New  Orleans  is  the  natural  port,  and,  in 
proportion  as  New  Orleans  comes  thus  into  its 
own,  the  railroads  which  serve  that  port  must 
share  in  its  prosperity.  Not  only  in  foreign  trade 
does  New  Orleans  expect  great  growth,  but  in 
trade  to  the  Pacific  Coast  of  the  United  States 
itself,  diverting  traffic  from  the  overland  routes. 
Thus  the  Illinois  Central  and  the  Louisville  and 
Nashville  may  become  competitors  of  the  Union 
Pacific  or  even  of  the  Great  Northern.  The 
strictly  north  and  south  lines  are  not,  however, 
the  only  ones  to  share  in  this  traffic.  The  Rock 
Island  controls  a  route  from  Chicago  to  Galves- 
ton, and  the  'Frisco  system  also  includes  a  Gulf 
connection.  Thus  these  western  transcontinental 
roads,  which  are  exposed  to  the  most  direct 
losses  from  the  competition  of  the  canal  route, 
have  at  least  some  small  chance  to  participate  in 
gains  as  well. 

So  much  for  the  commerce  of  the  Gulf  ports. 
What  of  the  transcontinental  traffic  and  car- 
riers? These  roads  are  clearly  liable  to  very 
definite  losses  from  the  opening  of  a  great  new 
waterway  which  must  inevitably  strengthen  the 
competition  for  business  from  coast  to  coast — a 
waterway  through  which  their  own  ships  may  not 
pass. 

Aside  from  the  general,  normal  growth  of  busi- 
ness, there  will  undoubtedly  be  some  business 
which  the  canal  itself  will  create.  Indeed,  there 
will  be  a  sort  of  rough,  natural  compensation  at 
work  by  which,  the  more  traffic  is  taken  from  the 
roads,  the  more  of  other  sorts  of  traffic  will  come 
in  to  them.  The  steamers  cannot  make  serious 
inroads  into  the  railways'  business  without  a  very 
considerable  lowering  of  rates;  a  slight  reduction 
will  not  do  it.  And  if  rates  are  lowered  a  great 
deal,  the  result  will  be  more  than  a  mere  diversion 
of  the  existing  traffic;  it  will  mean  a  stimulus  to 
industry  and  commerce  which  cannot  fail  to  fur- 
nish some  work  for  the  well  nigh  universal  com- 
mon carrier,  the  railroad. 


But  the  growth  of  new  business  is  problemat- 
ical and  takes  time,  and  in  the  meanwhile  the 
canal  route  will  be  taking  away  from  the  rail- 
roads some  of  the  business  they  already  have, 
just  at  the  time  when  the  revival  of  the  long- 
and-short  haul  clause  seems  threatening  to  de- 
prive them  of  their  customary  freedom  in  meeting 
the  inroads  of  competition.  At  present  the  boat 
lines  carry  something  over  one-tenth  of  the  trans- 
continental freight  tonnage.  However,  the  so- 
called  "transcontinental"  traffic  includes  ship- 
ments from  as  far  west  as  the  Mississippi  River, 
and  goods  destined  to  inland  points  throughout 
the  Pacific  slope.  In  fact,  only  about  one  ton  in  five 
of  the  westbound  transcontinental  traffic  comes 
from  farther  east  than  Buffalo  and  Pittsburg. 
The  Middle  West  has  become  dominant  over  the 
Atlantic  seaboard  in  the  commerce  of  the  Paci- 
fic slope. 

Now,  obviously,  it  is  the  traffic  from  seaport  to 
seaport  that  is  most  exposed  to  water  competi- 
tion, and  half  of  this  traffic  the  boat  lines  have 
already  taken  from  the  railroads. 

In  one  sense,  it  would  seem  as  if  the  railroads 
had  already  suffered  the  greatest  damage  to 
which  they  stand  exposed.  And  yet,  even  so, 
there  has  been  no  absolute  shrinkage  of  traffic  by 
rail.  The  increase  in  the  water-borne  tonnage  has 
come  out  of  the  normal  growth  of  the  total  vol- 
ume of  business.  The  question,  to  which  the  fu- 
ture holds  the  answer,  is:  will  the  added  advant- 
age from  the  use  of  the  canal  be  enough  to  take 
from  the  railroads  the  balance  of  the  coast-to- 
coast  freight,  and  make  serious  inroads  on  the 
business  moving  from  the  interior  cities? 

Compared  to  the  present  rail-and-water  routes 
across  the  isthmus  at  Panama  and  at  Tehuante- 
pec,  the  canal  route  will,  of  course,  be  faster  and 
substantially  cheaper.  The  steamship  lines  will 
save  an  amount  which  may  be  roughly  estimated 
not  to  exceed  13c  per  100  lbs.  of  freight,  or 
something  like  one-tenth  of  an  average  transcon- 
tinental freight  rate  by  rail. 

This  is  on  the  supposition  that  the  boats  travel 
with  full  cargoes,  but  the  indications  are  that 
they  will  probably  find  it  quite  difficult  to  secure 
an  east  bound  tonnage  equal  to  the  westbound. 
It  is  only  the  heavy  eastward  movement  of  Ha- 
waiian sugar  that  keeps  the  tonnage  fairly  well 
balanced  at  the  present  time.  If  the  freight 
passing  through  the  canal  has  to  pay  expenses  on 
a  balance  of  empty  cargo  space,  the  economy  of 
the  Panama  route  will  not  be  quite  as  great  as 
it  appears  on  paper. 

It  must  be  further  taken  into  account  that  the 
freight  rate  is  not  the  only  consideration  in  com- 
petition between  a  railroad  and  a  line  of  steam- 
boats. The  rates  are  now  from  20  per  cent  to 
60  per  cent  lower  by  water,  and  still  the  railroads 
keep  nearly  half  of  the  coast-to-coast  tonnage. 
Obviously,  a  great  deal  of  the  business  is  gov- 
erned by  other  considerations  than  the  mere 
freight  rate.  It  hardly  seems  probable  that  an- 
other 10  per  cent  subtracted  would  be  enough 
to  overcome  all  these  "other  considerations"  at 
|  one  blow,  and  take  all  the  remaining  traffic  away 


48 


THE  PANAMA  CANAL 


from  the  railroads,  even  if  the  roads  did  not  meet 
the  cut  in  rates. 

One  of  the  reasons  why  the  railroads  can 
charge  more  and  still  keep  a  large  share  of  traf- 
fic is  the  fact  that  the  train-isthmian  route  de- 
mands so  much  handling  en  route.  If  a  short  rail 
haul  is  needed  at  each  end,  the  goods  must  be 
loaded  and  unloaded  at  least  ten  times,  into  and 
out  of  three  freight  cars  and  two  steamers,  and 
all  of  this  means  a  greater  risk  of  injury  to  the 
goods  calling  for  more  expensive  packing  to 
protect  them.  With  the  Canal  in  use,  this  disad- 
vantage would  be  cut  approximately  in  half, 
though  it  would  still  remain  a  substantial  handi- 
cap. In  the  matter  of  speed  the  new  route  will 
about  equal  the  ordinary  slow-freight  service  of 
the  railways. 

There  are  some  things  which  the  steamers  can 
not  wholly  divert  by  any  reduction  in  rates.  Cal- 
ifornia fruit,  and  all  goods  using  the  special  fast 
freight  service  of  the  railroads,  would  prob- 
ably continue  to  move  largely  as  it  does 
now,  no  matter  what  inducements  the  steam- 
ship lines  might  offer.  The  fruit  growers' 
co-operative  associations  have  enormously  in- 
creased the  value  of  their  crops  by  follow- 
ing up  the  shipments  on  their  way  east- 
ward, and  diverting  them  by  telegraphic  orders 
to  the  most  favorable  market.  This  advantage 
they  will  probably  not  abandon,  even  if  the  other 
obstacles  to  the  carriage  of  fruit  by  steamer 
through  the  tropics  should  be  successfully  over- 
come. There  is  doubtless  other  traffic  which  will 
still  prefer  the  overland  route,  for  one  special 
reason  or  another.  On  the  whole,  then,  with  re- 
gard to  the  strictly  coast-to-coast  traffic,  the  sit- 
uation would  seem  to  be  this:  that  the  railroads 
will  not  lose  all  of  it  in  any  case;  but  that  they 
carry  less  than  half  of  it  at  present,  and  would 
probably  come  out  of  a  defensive  rate  war  with 
a  still  smaller  percentage. 

Will  they  lower  their  rates?  If  this  strictly 
through  traffic  were  a  thing  by  itself,  they  would 
probably  make  a  determined  effort  to  retain  it. 
But  it  is  not  a  thing  by  itself.  The  whole  eastern 
part  of  the  country  is  given  the  same  rates  on 
transcontinental  business,  so  that  the  railroads 
could  not  lower  the  New  York  rates  without  a 
similar  loss  of  revenue  on  the  vastly  greater  vol- 
ume of  shipments  originating,  or  terminating,  at 
inland  points  as  far  west  as  the  Mississippi  River. 
This  would  be  a  heavy  price  to  pay  to  keep  a 
small  part  of  the  traffic,  already  carried  at  far 
less  than  the  normal  margin  of  earnings.  In- 
deed, this  very  fact  may  help  to  explain  why  the 
railroads  have  avoided  rate  wars  in  the  imme- 
diate past,  and  have  followed  a  "live  and  let  live" 
policy  toward  the  steamship  lines  connecting 
with  the  Tehuantepec  and  the  Panama  railways. 
The  loss  would  have  been  greater  than  the  prize 
was  worth.  Unless  the  steamers  begin  tak- 
ing on  so  much  traffic  from  far  inland,  as  to  make 
serious  inroads  on  this,  the  main  part  of  the 
railroads'  transcontinental  business,  we  need  not 
expect  to  see  a  war  of  rates  inaugurated. 

For  all  of  this  traffic,  especially  for  traffic  which 
does  not  reach  the  seacoast  at  either  end  of  its 


journey,  the  railroads  will  continue  to  have  ad- 
vantages that  should  be  almost  decisive.  They 
will  avoid  two  transfers,  with  all  the  delay  and 
chance  of  injury  involved.  They  can  carry  the 
goods  more  quickly  and  more  safely  than  can  the 
steamers  with  rail  connections  at  the  terminals. 
And  when  the  traffic  goes  by  sea,  either  the  ship- 
per or  the  steamship  company  must  pay  the  rail- 
roads for  their  part  of  the  roundabout  haul,  thus 
increasing  the  expense  of  the  ocean  route.  At 
present,  some  shipments  move  by  water  from  as 
far  west  as  Buffalo  and  Pittsburg,  and  from 
points  a  hundred  to  a  hundred-and-fifty  miles  in- 
land on  the  Pacific  slope.  The  saving  from  the  use 
of  the  canal  may  be  equivalent,  at  a  liberal  esti- 
mate, to  an  extra  haul  of  three  hundred  miles  at 
the  eastern  end  of  the  journey,  or  less  than  half  as 
much  in  the  Pacific  coast  states,  where  rates  are 
higher.  How  formidable  this  widening  of  the 
steamers'  sphere  of  influence  will  prove,  is  a  mat- 
ter that  can  only  be  conjectured.  The  railraods 
may  be  consoled,  especially  the  eastern  lines,  by 
the  fact  that  even  such  traffic  as  they  may  lose  is 
not  wholly  lost.  They  will  merely  have  exchanged 
a  long  haul  at  a  low  margin  of  profit  for  shorter 
hauls  at  more  satisfactory  returns,  mile  for 
mile.  If  the  general  growth  of  traffic  is  as  great 
as  is  expected,  the  result  may  be  no  loss  at  all, 
but  rather  an  improvement  in  the  character  of 
the  traffic  and  an  increase  in  ton-mile  revenues. 

If  the  railroads  are  forced  to  fight  for  the  mid- 
dle-western traffic,  they  may  find  themselves 
somewhat  hampered  because  the  present  or- 
ders of  the  Interstate  Commerce  Commission 
place  certain  limits  on  the  practice  of  charging 
lower  rates  to  Pacific  seaports  than  to  intermed- 
iate points.  This  fact  should  prove  to  be  an  in- 
teresting incidental  problem,  but  not,  necessarily, 
a  terrifying  one,  even  though  the  Supreme  Court 
has  upheld  the  rulings  of  the  Commission.  The 
idea  of  these  rulings  is  to  grant  exemption  from 
the  long-and-short  haul  clause  and  allow  the 
railroads  to  discriminate  in  favor  of  their  term- 
inal cities,  just  so  far  as  they  are  compelled  by 
genuine  water  competition,  but  no  farther.  Now 
that  the  force  of  competition  by  sea  is  to  be  con- 
siderably increased,  it  is  entirely  possible  that 
the  details  of  the  Commission's  plan  may  need 
to  be  reconsidered  and  extensive  changes  made. 

In  particular,  it  seems  unnatural  that  Galveston 
should  be  classed  with  Omaha  as  a  place  enjoy- 
ing no  water  competition,  and  that  New  Orleans 
should  be  treated  as  enjoying  no  more  effective 
water  competition  than  Madison,  Wisconsin. 
Rates  from  Galveston  may  not  be  higher  to  in- 
termediate points  than  to  the  coast,  and  rates 
from  New  Orleans  may  be  only  7  per  cent  higher, 
while  from  Boston,  New  York,  Philadelphia  and 
Baltimore,  the  intermediate  rates  may  be  25  per 
cent  higher,  the  through  rates  being  forced  down 
by  water  competition.  At  present,  no  regular 
steamship  lines  run  frrm  the  Gulf  ports  to  the 
isthmus,  but  with  the  opening  of  the  canal  we 
may  expect  to  see  genuine  and  active  water  com- 
petition at  these  points.  Accordingly,  we  may 
expect  that  the  Interstate  Commerce  Commis- 
sion, following  the  principle  of  its  first  ruling, 


THE  PANAMA  CANAL 


49 


will  grant  more  liberal  dispensations  from  the 
long-and-short  haul  clause,  especially  to  the  rail- 
roads serving  the  Gulf  Ports,  provided  that  these 
carriers  show  that  they  need  the  revenue  which 
higher  rates  to  intermediate  points  would  furnish. 

So  far,  we  have  been  viewing  the  more  im- 
mediate effects  of  the  canal,  and  we  have  seen 
that  there  will  be  both  gains  and  losses.  Will 
things  bear  a  different  aspect  in  the  long  run? 
Will  the  railroads  ever  reach  that  happy  state  in 
which  they  will  not  care  how  much  through 
freight  is  carried  by  the  steamers?  There  is 
good  reason  for  believing  that  the  time  will  come 
when  railroading  will  not  be  a  business  of  "in- 
creasing returns"  to  anything  like  the  same  ex- 
tent that  it  has  been  in  the  past,  if  at  all,  and 
when  extra  tonnage,  carried  extra  long  distances 
at  extra  low  rates,  will  not  be  regarded  as  a  val- 
uable prize,  but  as  a  very  doubtful  asset. 

For  some  roads,  indeed,  that  time  seems  to 
have  arrived  already.  To  the  Pennsylvania  Rail- 
road, for  example,  the  regular  growth  of  traffic 
means  the  outlay  of  enormous  sums  for  increased 
plant  to  handle  the  added  tonnage,  over  $64,- 
000,000  having  been  spent  thus  in  the  last  year 
alone.  In  recent  years  this  Company  has  built 
what  is  virtually  a  separate  double-track  rail- 
road to  handle  freight  alone  and  relieve  the  main 
line  of  congestion.  The  expenses,  for  various 
reasons,  (not  all  connected  with  increased  traf- 
fic) are  growing  actually  faster  than  the  income. 
Under  such  conditions,  it  is  far  from  true  that 
added  traffic  always  pays,  so  long  as  it  brings  in 


TOWING  ENGINE  CLIMBING  RUNWAY. 


LOOKING   THROUGH    GATUN    LOCKS. 

anything  above  operating  expenses.  A  road  in 
this  condition  need  not  mourn  if  a  competitor 
kindly  relieves  it  of  some  of  its  least  profitable 
business. 

The  condition  of  the  lines  east  of  Pittsburg 
can,  in  itself,  hardly  have  much  bearing  on  the 
question  at  issue,  for  these  lines  are  comparative- 
ly indifferent  to  canal  competition  in  any  case. 
But  we  are  looking  into  the  future,  to  a  time  when 
lines  farther  west  will  be  approaching  a  similar 
condition.  At  present,  it  is  the  western  roads, 
rather  than  their  eastern  connections,  which  are 
chiefly  responsible  for  the  disregard  of  distance 
that  characterizes  our  transcontinental  freight 
rates. 

When  the  plant  was  partly  idle,  more  tonnage 
was  a  boon  at  almost  any  price.  But  as  traffic 
becomes  more  dense,  the  motive  to  discriminate 
becomes  weaker  and  weaker.  Thus  the  western 
lines  made  low  rates  to  fill  their  eastbound  empty 
cars  with  lumber,  with  the  final  result  that  the 
policy  was  too  successful.  The  cars  were  more 
than  filled,  and  further  shipments  of  lumber  were 
chargeable  with  the  cost  of  added  rolling  stock, 
and  the  haul  of  empty  cars  westward,  as  well. 
This  is  an  extreme  case,  but  typical. 

The  western  roads  have,  of  late,  been  spending 
many  millions  in  enlarging  the  capacity  of  road- 
bed and  rolling  stock,  while  the  moving  of  freight 
through  Chicago,  St.  Louis,  and  other  western 
cities  is  a  great  and  growing  problem,  calling  for 
huge   capital   expenditures.     No   traffic   is   self- 


50 


THE  PANAMA  CANAL 


supporting  which  does  not  contribute  its  full 
share  toward  the  interest  on  these  outlays.  When 
congestion  turns  railroading  into  a  business  of 
diminishing  returns,  the  traffic  that  was  once 
eagerly  sought  for  at  extra  low  rates,  may  be- 
come an  actual  burden,  to  be  borne  grudgingly, 
and  only  out  of  consideration  for  the  many  in- 
terests that  are  always  dependent  on  an  estab- 
lished adjustment  of  charges. 

Across  the  arid  and  mountainous  stretches  of 
the  West  the  tonnage  will  hardly  grow  to  this 
extent,  and  the  officials  in  charge  of  these  divi- 
sions may  never  cease  to  cast  covetous  eyes  at 
the  water-borne  traffic.  But  as  the  rest  of  the 
country  grows  up  to  its  transportation  facilities, 
we  may  expect  that  the  carriers  in  general  will 
soon  cease  to  lament  the  business  the  canal  has 
taken  away,  while  they  will  continue  to  enjoy  the 
more  attractive  business  which  the  many-sided 


THE  REMOTE  EFFECTS  OF  THE  PANAMA 
CANAL. 

By  John  Bates  Clark,  ph.d.,  l.l.d. 
Professor  of  Political  Economy,  Columbia  Univer- 
sity; Director  of  the  Division  of  Economics 
and  History,  Carnegie  Endowment 
for  International  Peace. 

What,  after  all,  is  the  Panama  Canal?  Is  it 
merely  a  ditch,  forty-nine  miles  long,  and  are  the 
two  ends  of  it  respectively  at  Panama  and  Colon? 
In  a  truer  sense  it  is  a  connecting  link  between  two 
vast  systems  of  canals  comprising  the  water  routes 
which  radiate  from  the  two  terminal  harbors  to  every 
part  of  the  earth.  If  we  consider  that  every  "steam- 
ship lane"  is  in  effect  such  a  line  of  water  communi- 
cation as  a  canal  furnishes,  though  better  than  any 
artificial  canal  can  be,  we  may  say  that  the  ex- 
cavation across  the  narrow  isthmus  of  Panama  has 
at  one  stroke  united  some  hundreds  of  channels 
lying  eastward  from  America  with  an  equal  num- 
ber lying  on  the  western  side.  A  myriad  of  long 
routes  for  travelling  by  water  meet  and  intersect  in 
the  small  canal  zone. 

It  is  a  truism  that  commerce  binds  nations  together 
and  that  the  international  bond  is  closer  the  more 
dependent  on  each  other  the  nations  come  to  be. 
The  commerce  between  a  country  having  much 
land  and  few  people  and  one  that  has  little  land 
and  many  people  is  essential  to  both  of  them.  Eng- 
land thus  clothes  other  countries  and  is  fed  by  them. 
The  commercial  bond  is  close  between  any  two 
regions  that  in  an  economic  way  are  as  unlike  as 
are  temperate  regions  and  tropical  ones. 

All  trade  is  essentially  barter.  It  pays  New 
England  to  send  cotton  goods,  paper,  machinery, 
etc.,  to  the  West  Indies  in  exchange  for  bananas 
and  pineapples  rather  than  to  try  to  cultivate 
these  fruits;  and  it  pays  the  West  Indian  to  ac- 
quire the  manufactured  goods  thus  indirectly  rather 
than  to  attempt  directly  to  make  them.  Densely 
peopled  regions  and  sparsely  peopled  ones  make 
similar  gains  by  exchanging  products.  A  land  of 
shops  and  factories  thrives  by  commerce  with  a  land 
of  flocks,  herds  and  grain  fields. 

Usually  countries  of  dense  population  are  advanced 
in  a  technical  way.    They  abound  in  mills  and  shops 


growth  of  the  country  will  bring  with  it. 

Let  us  suppose  that  the  canal  has  taken  its 
place  in  our  commercial  system  and  our  grow- 
ing population  and  industry  have  adjusted  them- 
selves to  it.  The  railroads  will  then,  as  now, 
be  facing  the  problem  of  providing  billions  of 
capital  to  meet  the  transportation  demands  of 
our  ever-growing  country.  What  would  they  say 
then  to  a  proposal  to  close  the  Panama  waterway 
to  all  coastwise  traffic,  and  throw  upon  them  the 
responsibility  of  raising  funds  to  provide  facilities 
for  a  sudden  increase  of  relatively  low  grade 
business?  One  can  hardly  imagine  them  active- 
ly advocating  the  passage  of  such  a  measure. 
On  the  contrary,  if,  in  the  year  1950,  an  earth- 
quake should  destroy  the  canal,  it  is  quite  pos- 
sible that  among  those  who  would  view  the  ca- 
tastrophe with  the  most  sincere  grief  would  be 
the  heads  of  the  great  railroad  systems  of  the 
country. 


and  they  use  improved  methods  and  machinery. 
China,  however,  is  densely  peopled  and  its  industrial 
methods  are  still  primitive.  The  sea  that  separates 
her  from  America  is  narrower  than  was  once  the 
English  Channel,  and  it  might  seem  that  here  were 
found  the  countries  of  the  greatest  commercial 
affinity  between  Avhich  incentives  to  trade  would  be 
at  a  maximum. 

It  is  not  so.  The  mere  density  of  the  population 
of  China,  by  providing  an  unlimited  supply  of  cheap 
labor,  somewhat  neutralizes  the  effect  of  Ameri- 
can machinery,  and  unlike  as  in  many  ways  the  two 
countries  are,  there  is  more  of  similarity  than  of 
contrast  in  their  products.  In  both  of  them  the  in- 
ternal commerce  greatly  overbalances  the  foreign. 
Both  of  them  are  highly  civilized  and  have  developed 
the  refinements  of  life  to  an  extent  that  calls  for  a 
wide  range  of  commodities.  In  America  the  goods 
are  made  for  us  by  the  deft  fingers  of  tireless  ma- 
chines, while  in  eastern  Asia  they  are,  for  the  most 
part,  made  by  trained  hands.  The  amount  of  labor 
required  for  a  given  product  is  enormously  greater 
in  Asia;  but  the  difference  in  cost  between  making 
the  goods  in  Asia  and  making  them  in  America  is 
far  less  than  it  would  otherwise  be.  It  is  the  familiar 
rivalry  of  machine  and  cheap  labor,  and  while  the 
machine  wins,  yet  so  long  as  it  is  used  by  an  Ameri- 
can worker,  it  does  not  win  by  such  a  margin  that  it 
can  immediately  drive  the  Asiatic  worker  out  of  his 
trade.  If  used  by  an  Asiatic  worker,  it  can  and  will 
do  this.  It  is  foreordained  that  Asia  shall  go  the 
way  of  western  lands  that  have  put  machines  in  the 
place  of  trained  hands,  and  when  that  happens  the 
entire  world  must  take  note  of  it,  and  the  canal  will 
have  a  new  work  to  do. 

In  estimating  the  effect  of  the  canal  on  the  rela- 
tion of  the  United  States  to  South  America  we  do 
not  have  to  assume  that  the  industry  of  the  latter 
continent  is  about  to  undergo  such  a  sweeping  trans- 
formation as  is  to  be  expected  in  Asia.  The  im- 
portance to  America  of  lanes  of  commerce  that  in- 
tersect at  Panama  lies  partly  in  bringing  our  east- 
ern states  into  connection  with  the  western  part  of 
South  America.  From  the  Pacific  states  of  South 
America  we  can  draw  ores,  fertilizers,  and,  in  gen- 
eral, raw  products,  in  exchange  for  some  other  raw 


THE  PANAMA  CANAL 


51 


products  and  a  variety  of  manufactured  ones.  By 
aid  of  the  canal  we  can  greatly  increase  the  volume 
of  such  traffic,  but  the  new  connection  is  not  likely 
to  transform  the  industry  of  the  southern  continent. 

With  Eastern  Asia  the  case  is  different.  From  the 
first  there  will  be  some  exchanging  of  raw  products 
and  much  exchanging  of  highly  wrought  ones.  We 
shall  bring  thence  tea,  rice  and  raw  silk,  and  from 
the  neighboring  islands  at  the  south  we  shall  bring 
hemp  and  sugar  and  tobacco ;  but  we  shall  also  bring 
from  China  and  Japan  art  products  and  many 
highly  wrought  specialties.  AVe  shall  send  to  them 
refined  oil  and  agricultural  produce,  together  with 
tools,  machines,  and  a  varied  assortment  of'  finished 
goods.  Our  importations  from  Asia  will  thus  com- 
bine agricultural  products  with  industrial  ones;  our 
exports  to  Asia  will  do  the  same,  and  the  traffic  at 
fir<t  will  be  much  smaller  than  it  would  be  if  the 
products  of  the  two  regions  were  generally  unlike. 
Between  the  two  lists  of  goods  produced  in  North 
America  and  in  Eastern  Asia  respectively  there  is 
not,  if  we  take  each  list  in  its  entirety,  as  radical  a 
difference  as  there  might  be. 

The  character  of  the  traffic  between  these  vast 
regions  will  change  much  with  the  rapid  moderniz- 
ing of  Asiatic  production.  We  have  not  merely 
to  look  at  China  and  Japan  as  they  are 
and  try  to  see  what  special  advantages  are  at 
pn  sent  offered  by  the  exchanging  of  one  or  another 
kind  of  goods.  Our  problem  becomes  far  more  in- 
teresting when  we  consider  what  China  and  Japan 
must  and  will  become  in  the  near  future.  The  ma- 
chine is  nearly  omnipotent  and  may  be  trusted  to 
oontrol  the  history  of  Asia.  Man  makes  it,  indeed, 
Imt  it  controls  him  and  shapes  the  destiny  of  his 
race.  The  ingenuity  of  one  inventor  devises  an  en- 
gine  of  production,  and  the  labor  of  a  few  mechanics 
constructs  it;  but  it  then  multiplies  like  a  prolific 
animal  and  in  the  end  dominates  men  and  shapes 
empires.  All  the  while  it  serves  men  like  a  genie  of 
the  lamp.  Machines  have  utterly  transformed  the 
economic  shape  of  much  of  the  world,  and  they  will 
continue  to  do  this  on  a  grand  scale  as  soon  as  the 
dose  connection  of  Eastern  Asia  with  Europe  and 
America  shall  have  produced  its  natural  effect. 

\-ia  is  bound  to  repeat  the  history  of  Europe  and 
America  in  so  far  as  the  arts  of  industry  are  con- 
cerned. How  many  decades  this  will  take  it  would 
be  rash  to  prophesy.  How  many  detailed  processes 
now  used  in  the  West  will  be  adopted  in  the  East 
during  each  decade  of  the  twentieth  century  no  one 
can  positively  assert;  but  the  general  fact  that  hand 
labor  will  gradually  yield  to  machine  labor,  in  Asia 
as  everywhere  else,  is  surer  than  the  average  fact  of 
history.  Some  prophecy  is  surer  than  some  history 
and  that  which  predicts  the  triumph  of  the  machine 
is  one  of  the  prophetic  certainties.  On  this  point 
we  can  reverse  Webster's  familiar  statement  and 
say,  "The  future,  at  least,  is  secure."  We  know  that 
Asia  will  introduce  machinery  on  a  great  scale,  that 
the  whole  world  will  be  powerfully  affected  by  this 
change  and  that  our  own  relation  to  Asia  will  be 
dominated  by  it. 

This  will  happen  partly  because  machinery  every- 
where excels  hand  labor;  but  in  this  case  there  is  a 
further  and  very  decisive  reason  for  it.     Machinery 


has  its  best  field  in  a  country  of  dense  population. 
It  takes  time  and  a  struggle  to  introduce  the  ma- 
chinery of  manufacturing  into  a  new  country  where 
land  is  abundant  and  men  scarce.  Where  land  is 
scarce  and  is  worked  to  the  final  limit  of  intensive- 
ness,  the  produce  per  man  is  small  and  wages  are 
necessarily  low.  Such  a  country  is  compelled  to  go 
into  manufacturing  and  can  afford  to  undersell  the 
world  in  the  products  of  it.  The  poverty  of  its  agri- 
culture is  its  key  to  success  as  a  competitor  in  manu- 
facturing. If  the  Chinese  laborer  can  earn  only 
fifteen  cents  per  day  on  the  farm,  he  can  get  only 
a  little  more  than  fifteen  cents  in  a  workshop;  and 
when  a  mill  with  modern  machinery  has  supplanted 
the  workshop  and  is  run  by  men  who  get  twenty-five 
cents  per  day,  it  can  undersell  a  mill  in  a  richer 
land.  China  and  Japan  taken  together  have  the 
capacity  to  become  ultimately  the  great  workshop  of 
the  world. 

Does  this  mean  a  real  "yellow  peril"  for  the  re- 
mainder of  mankind?  If  the  transformation  came 
all  at  once,  it  might  mean  this,  and  it  would  cer- 
tainly mean  a  violent  overturning  in  China  itself. 
If  the  change  comes  quite  gradually,  it  may  involve 
no  peril  but  an  assured  gain  for  western  countries 
and  a  greater  one  for  China. 

We  need  to  know  what  parts  of  the  world  will  be 
the  natural  customers  of  the  manufacturers  of  the 
East.  Strictly  speaking,  commerce  is  between  occu- 
pations rather  than  between  localities.  The  weaver 
and  the  tailor  clothe  the  farmer  and  the  farmer 
feeds  them,  though  they  may  all  happen  to  live  in 
the  same  township;  and  it  is  only  in  a  secondary  way 
that  one  can  speak  of  one  country  as  being  agri- 
cultural and  of  another  as  being  industrial.  Farm- 
ers buy  more  of  the  goods  manufactured  by  their 
own  countrymen  than  of  goods  manufactured  by 
foreigners,  and  for  an  indefinite  time — probably  for 
centuries — this  will  hold  true  in  Eastern  Asia,  though 
even  a  great  region  like  this  can  never  supply  its 
wants  altogether  by  its  own  direct  production.  Long 
before  Asia  will  have  developed  its  manufacturing  as 
fully  as  it  is  now  developed  elsewhere  it  will  begin 
to  export  some  of  the  products  of  it,  but  the  amount 
that  will  come  to  Europe  and  America  will  be  re- 
stricted by  several  influences.  Mere  inertia — the 
slowness  with  which  the  transformation  of  an  eco- 
nomic system  proceeds — will  protect  the  present  gen- 
eration of  western  producers.  Japan  has  modern- 
ized itself  with  brilliant  rapidity,  but  even  she  has 
made  only  a  beginning  in  the  introduction  of  west- 
ern machinery.  The  question  that  can  be  intelli- 
gently asked  is  whether,  in  later  generations,  West, 
em  countries  will  encounter  a  real  danger  from  this 
rivalry  of  eastern  manufacturers,  and  whether,  for 
fear  of  it,  we  shall  suffer  from  a  recrudescence  of  ex- 
teme  protectionism.  Shall  we  ever  need  a  Chinese 
wall  to  bar  out  the  products  of  China? 

It  is  conceivable  that  the  "pauper  labor"  of  the 
East,  with  machinery  at  its  command,  might  play 
the  part  in  discussion  with  which  we  have  been 
made  familiar  in  the  case  of  the  so  called  "pauper 
labor"  of  Europe,  and  a  prohibitory  tariff  might 
be  called  for  in  the  platform  of  some  party.  As 
bearing  on  this  question  there  are  a  few  more 
points     on     which     known     economic     tendencies 


52 


THE  PANAMA  CANAL 


enable  us  to  form  assured  opinions.  One  is 
that,  in  Asia,  the  different  productive  arts  will  be 
modernized  one  by  one,  and  not  all  together;  and 
another  is  that,  for  many  years,  the  principal  mark- 
ets supplied  by  every  one  of  these  modernized  in- 
dustries will  be  found  within  the  boundaries  of  the 
Asiatic  empires  themselves.  If  we  include  with  Ja- 
pan that  portion  of  the  mainland  in  which  she  has 
lately  become  dominant,  we  may  say  that  three 
vast  oriental  empires — those,  namely,  of  Japan, 
China  and  Russia — with  all  of  which  the  Panama 
Canal  has  brought  our  Eastern  States  into  closer 
connection,  will  slowly  remodel  their  economic  sys- 
tems and  bring  them  into  closer  resemblance  to 
those  of  the  West.  They  will  do  this  in  the  order 
in  which  they  are  here  named,  Japan  being  the  first 
to  accomplish  it,  Asiatic  Russia  the  last  and  the 
Chinese  Empire  being  between  them  in  the  succes- 
sion. It  will  take  time  to  transform  even  the  in- 
dustries of  the  first  of  the  three  empires,  and  a  very 
Jong  time  to  transform  those  of  the  last. 

Again,  when  the  exporting  of  manufactured 
products  from  one  of  these  regions  takes  place  on 
a  large  scale  it  will  seek  pre-eminently  those  parts 
of  the  earth  which  offer  the  greatest  gain  from  the 
interchange,  and  that  means  agricultural  and  min- 
ing regions.  Raw  materials  and  food  will  be  what 
the  industrial  populations  of  Asia  will  chiefly  need. 
The  strongest  affinity,  so  to  speak,  of  such  cen- 
ters of  manufacturing  will  be  with  the  interior  dis- 
tricts of  the  Chinese  empire  and  the  limitless  stretches 
of  Manchuria  and  Siberia.  Unless  political  obsta- 
cles intervene,  traffic  of  great  usefulness  and  equally 
great  profit  should  exist  between  these  regions.  The 
Pacific  states  of  North  America  will  have  something 
to  offer  to  the  developing  industrial  populations  of 
Asia,  and  with  them,  as  with  Siberia,  the  connec- 
tion will  be  made  quite  independently  of  the  Pan- 
ama Canal.  With  Atlantic  states  the  case  is  quite 
otherwise.  Brazil,  the  West  Indies  and  the  old 
"Spanish  Main"  will  be  brought  commercially 
within  reach  of  Japan  by  the  Canal  route.  Argen- 
tina, however,  is  already  reachable  by  way  of  Cape 
Horn  and  the  Canal  will  not  greatly  affect  her  deal- 
ings with  the  East,  which  will  be  large  in  any  case. 
The  products  of  the  new  industrial  centers  of  Asia 
will  seek  out  such  regions  as  markets  and  if  com- 
mercial "buffer  states"  are  needed  to  ward  off  from 
our  industrial  centers  the  impact  of  Asiatic  com- 
petition, these  and  similar  regions  will  furnish  them. 

We  are  chiefly  interested  in  knowing  how  the 
eastern  half  of  the  United  States  will  be  affected.  It 
is  here  that  industrialism  has  its  chief  home  and 
here,  if  anywhere,  Asiatic  rivalry  will  be  dreaded. 
It  is  therefore  in  connection  with  what  may  happen 
to  this  region,  with  its  vast  production,  that  a  broad 
and  clear  view  is  most  needed.  What  I  venture  to 
predict  is  that  there  will  be  a  large  increase  of  traffic 
between  eastern  America  and  eastern  Asia  and  that 
the  exportation  of  manufactured  goods  to  that  great 
region  taken  as  a  whole  will  not  be  reduced  by  the 
modernization  of  Asiatic  production.  The  time  will 
doubtless  conic  when  we  shall  import  goods  from  the 
workshops  of  Japan  and  China.     They  will  consist 


of  special  products  for  making  which  those  coun- 
tries are  particularly  well  adapted.  It  would  be 
strange  if  we  should  not  import  from  that  region 
products  of  silk.  Thanks  to  the  presence  of  machinery 
in  America,  the  absence  of  it  in  Eastern  Asia,  and 
a  high  protective  tariff,  we  now  import  from  them 
relatively  little  manufactured  silk ;  but  with  the  tariff 
even  as  high  as  it  is  and  modern  machinery  intro- 
duced into  the  East,  the  situation  would  be  other- 
wise. It  will  be  found,  however,  that  every  case  of 
silk  that  shall  come  from  those  countries  will  create 
a  demand  for  other  manufactures  in  the  making  of 
which  we  shall  for  an  indefinite  time  have  the  ad- 
vantage. And  we  shall  export  them  in  greatly  in- 
creased quantity  because  of  the  new  and  abounding 
wealth  of  the  eastern  lands. 

The  indirect  effects  of  modernizing  the  industries 
of  the  East  are  too  complex  to  be  more  than  alluded 
to  here;  but  it  is  a  perfectly  safe  prediction  that  the 
general  development  which  will  take  place  in  the 
East  will  make  that  vast  region  a  better  and  better 
customer  for  the  producers  of  the  West  and  that  an 
influx  of  riches  measured  and  expressed  in  gold  will 
be  the  only  "yellow"  incident  in  the  case.  Within 
the  vast  confines  of  the  three  great  empires  the  "dy- 
namic" movement  that  is  going  on  will  open  more 
markets  for  American  products  than  it  closes.  A 
narrow  view  might  lead  some  men  to  think  other- 
wise, and  a  narrow  policy  might  lead  a  country  to 
act  otherwise  than  in  the  way  that  would  secure  for 
itself  the  largest  benefit  from  this  development. 

There  is  an  immigration  problem  too  vast  to  be 
more  than  mentioned  here ;  but  it  is  evident  that  the 
modernization  of  Asia  will,  as  far  as  it  goes,  reduce 
the  incentives  for  emigrating  from  that  continent. 
The  richer  Asia  becomes,  the  higher  will  be  the  stand- 
ard of  living  of  its  people ;  and  this  will  make  them 
better  customers  if  they  stay  where  they  are,  and  will 
cause  more  of  them  to  stay  there. 

In  general,  it  is  the  common  interests  of  man- 
kind that  will  be  promoted  by  the  use  of  the  Pan- 
ama Canal,  and  the  gains  will  be  those  in  which  all 
nations  will  participate.  If  we  divide  the  world  into 
two  hemispheres  by  a  meridian  running  through  the 
Pacific  and  the  Atlantic,  the  commercial  center  of 
one  hemisphere  will  be  at  Panama  and  that  of  the 
other  at  Suez.  At  these  points  routes  innumerable 
intersect,  and  through  each  of  the  artificial  straits 
will  pass  an  ever  increasing  volume  of  commerce. 
Relatively  the  increase  of  the  traffic  through  the  Pan- 
ama Canal  will  be  the  greater,  and  long  before  the 
time  when  the  full  economic  transformation  of  the 
Pacific  countries  will  have  been  established,  it  will 
take  more  than  one  channel  across  the  American 
isthmus  to  accommodate  it.  No  traffic  which  the 
present  generation  will  witness  will  constitute  more 
than  a  tithe  of  that  which  will  be  seen  in  the  future, 
and  no  figures  that  anyone  would  now  dare  to  make 
will  measure  the  wealth  that  will  ultimately  flow 
from  it.  The  chief  single  fact  about  the  canal  is  its 
aptitude  for  becoming  a  vital  world  asset,  from  the 
use  of  which  under  a  far  seeing  policy,  our  land  and 
all  lands  will  thrive.  It  should  be  no  cause  of  con- 
tention but  a  bond  of  fraternity  and  assured  peace. 


THE  PACIFIC 
COAST 


54 


BANKS  AND  BANKING 


SAX   FRANCISCO  REUUILT.     IN  THE  FINANCIAL  DISTRICT. 


BANKS  AND  BANKING  ON  THE  PACIFIC 
COAST. 

By  J.  K.  Lynch,  President  of  the  San  Francisco 

Clearing  House.    Vice  President  of  the  First 

National   Bank   of   San   Francisco. 

If  asked  to  name  the  particulars  in  which  bank- 
ing on  the  Pacific  Coast  differs  most  widely  from 
banking  on  the  Atlantic  seaboard,  we  must  reply 
that  it  is  in  the  larger  proportion  of  capital  to 
deposits  in  the  banks  of  the  Pacific  Coast,  and  in 
the  greater  rigidity  of  the  loans  in  which  their 
funds  are  invested.  Both  conditions  are  the  di- 
rect result  of  the  newness  of  the  country  and  the 
consequent  scarcity  of  capital  available  for  the 
development  of  the  great  natural  resources  of 
the  region.  Under-capitalized  enterprises  lean  on 
their  commercial  depositaries  for  funds  which 
should  be  supplied  by  shareholders,  or  through 
funded  loans  repayable  over  a  long  term  of  years. 
Thus  the  proceeds  of  loans  nominally  payable  on 
demand  are  actually  invested  in  plant  and  fix- 
tures. 

This  is  true  not  alone  of  manufacturing  con- 
cerns but  also  of  those  engaged  in  merchandis- 
ing, so  that  relatively  few  of  them  measure  up  to 
the  standard  set  for  firms  that  can  issue  saleable 
commercial  paper.  The  favorite  form  of  note 
obligation  is  therefore  made  payable  "one  day 
after  date,"  which  means  in  practice,  at  the  pleas- 
ure of  the  maker  and  only  then,  unless  the  banker 
is  ready  to  call  the  loan  and  (incidentally)  to  dis- 
lodge the  account.  The  one-day-after-date  note, 
which  is  the  successor  of  the  overdraft,  has 
tended  to  diminish  the  balances  which  the  banker 
has  a  right  to  expect  from  the  accounts  of  bor- 
rowers. The  evils  of  this  system  are  fully  recog- 
nized and  the  practice  is  being  restricted  year  by 
year,  but  the  underlying  condition  from  which 
it  has  resulted  can  only  be  removed  gradually, 
and  after  the  lapse  of  considerable  time. 

The  Pacific  Coast  witnessed  the  evolution  of 
the  bank  from  the  merchandising  concern,  epi- 
tomizing in  a  few  years  a  process  that  has  con- 
sumed hundreds  of  years  in  developing  through- 
out the  world. 

In  the  mining  regions  the  early  bankers  were 
buyers  and  shippers  of  gold  dust  and  gold  bul- 
lion, which  was  exchanged  for  merchandise.     In 


the  farming  districts  produce  was  handled  in  the 
same  way  and  the  final  function  of  the  banker, 
the  loaning  of  credit  resulting  from  the  sale  of 
produce  (whether  of  the  mines  or  of  the  fields), 
was  an  easy  and  natural  step.  In  some  of  the 
more  remote  places  the  general  merchant  is  still 
the  banker,  but  the  search  for  banking  locations 
has  been  prosecuted  so  vigorously  that  there  are 
today  but  few  places  that  are  not  provided  with  a 
bank,  the  organizers  frequently  being  willing  to 
ignore  profits  for  some  years  in  order  to  be  first 
in  the  field,  and  to  secure  that  goodwill  which 
comes  from  assisting  in  the  development  of  the 
community.  More  rigid  laws  passed  by  the  dif- 
ferent States  have  also  contributed  to  the  elim- 
ination from  banking  of  all  those  not  exclusively 
in  the  business,  and  under  the  safeguards  of 
either  State  or  National  laws. 

The  history  of  banking  in  California  is  typical 
of  that  on  the  entire  coast,  at  least  in  the  earlier 
stages  of  the  business.  Of  the  many  private  firms 
that  began  banking  in  the  fifties  but  few  survived 
the  speculation  and  the  fluctuations  in  trade 
which  are  characteristic  of  pioneer  days.  Fail- 
ure removed  the  greater  number;  some  retired  in 
a  more  regular  way;  and  the  few  who  remained 
were  absorbed  by  incorporated  banks,  or  them- 
selves incorporated. 

From  the  fact  that  California,  and  the  Pacific 
Coast  generally,  remained  on  a  gold  basis  while 
the  rest  of  the  country  kept  the  currency  dollar 
as  the  unit  of  value,  the  National  system  made 
its  way  slowly.  The  first  National  bank  incor- 
porated in  California  was  chartered  in  1870  under 
the  amendment  to  the  banking  Act  authorizing 
banks  to  issue  currency  notes  payable  in  gold. 
Altogether  some  ten  banks  were  organized 
under  this  Act.  When  the  Government  resumed 
specie  payments  there  was  no  further  reason  for 
the  existence  of  the  National-Gold  banks,  and  the 
heavier  penalties  they  were  obliged  to  bear  caused 
them  to  enter  the  National  system  on  the  same 
terms  as  the  banks  throughout  the  country.  The 
majority  of  the  banks  in  the  central  and  northern 
portions  of  the  State  remained  under  the  State 
system,  and  it  was  not  until  the  passage  of  a  se- 
verely restrictive  Act  known  as  the  California 
Bank  Act  of  1909,  that  some  of  the  largest  banks 
changed  to  the  National  system. 

San  Francisco  was  recognized  as  an  important 


BANKS  AND  BANKING 


55 


link  in  the  chain  of  international  exchange  opera- 
tions from  an  early  date,  and  English  and  French 
banks  established  branches  which  had  an  im- 
portant part  in  the  development  of  the  Coast. 
The  Canadian  joint  stock  banks  also  entered  the 
field,  and  two  of  them  still  maintain  nourishing 
branches  in  San  Francisco. 

In  the  southern  part  of  California,  with  Los 
Angeles  as  the  financial  center,  the  National  sys- 
tem made  a  beginning  with  The  First  National 
Bank  of  that  city,  converted  from  a  State  bank 
in  1880.  Following  the  building  of  the  trans- 
continental roads  entering  Los  Angeles,  and  the 
consequent  increase  in  population  coming  from 
the  Middle  West  and  from  the  Atlantic  Seaboard, 
(made  up  largely  of  men  familiar  with  the  Na- 
tional system),  it  became  a  strong  favorite  in 
that  part  of  the  State. 

While  the  principal  commercial  banks  in  Cal- 
ifornia are  now  operating  under  the  National 
laws,  those  laws  have  made  but  inadequate  pro- 
vision for  the  Savings  business,  which,  from  the 
beginning,  had  been  well  cared  for  under  the 
State  laws.  In  fact,  one  of  the  characteristic 
features  of  banking  in  San  Francisco  is  the  num- 
ber of  large  Savings  banks  strongly  capitalized 
and  having  deposits  aggregating  one  hundred  and 
eighty-five  millions.  Many  of  these  deposits  are 
not  strictly  savings,  but  represent,  rather,  idle 
funds  awaiting  investment  by  the  owners.  In 
this  city  the  Savings  banks  have  taken  on  a  class 
of  business  which  on  the  other  side  of  the  con- 
tinent is  in  the  hands  of  the  Trust  Companies. 

It  being  generally  recognized  that  the  Bank  Act 
of  1909  was  too  restrictive,  and  that  it  placed  the 
State  banks  at  a  disadvantage  in  competing  with 
the  Nationals,  amendments  to  the  Act  were 
passed  at  the  last  session  of  the  legislature  which 
have  made  the  law  much  more  flexible,  and  the 
effect  has  been  to  check  the  conversion  of  State 
banks  to  Nationals.  One  feature  of  Act  which 
has  proved  popular  is  that  permitting  one  insti- 
tution to  transact  Commercial,  Savings,  and 
Trust  business,  a  segregation  of  capital  being  re- 
quired for  each  branch  of  the  business.  A  suf- 
ficient time  has  not  yet  elapsed  to  determine 
whether  or  not  this  departmental  banking  will 
prove  more  efficient,  and  consequently  more 
profitable,  than  the  more  specialized  banking 
hitherto  in  force.  In  the  smaller  communities  the 
departmental  bank  has  manifest  advantages,  but 
it  is  not  so  clear  that  these  advantages  extend  to 
banks  in  the  large  cities. 

One  feature  of  the  Bank  Act  which  is  worthy 
of  notice  is  the  requirement  to  maintain  a  ratio 
of  at  least  one  to  ten  between  the  capital  and 
surplus,  and  the  deposits.  This  is  no  hardship  in 
the  case  of  a  commercial  bank  but,  in  a  prosper- 
ous community,  it  sometimes  keeps  the  share-  { 
holders  in  a  savings  institution  busy. 

In  spite  of  some  features  which  are  still  re- 
garded as  unnecessarily  restrictive,  and  which 
may  be  removed  by  future  legislation,  this  Act 
is  undoubtedly  one  of  the  best  banking  laws  in 
the  country,  and  its  operations  have  done  much 
to  raise  the  standard  of  the  State  banks. 

While  Oregon  went  through  the  preliminary 


stage  of  banking  by  merchandising  firms,  express 
companies,  and  private  bankers,  the  National 
system  was  initiated  by  the  incorporators  of  The 
First  National  Bank  of  Portland  in  1866, — four 
years  earlier  than  the  incorporation  of  The  First 
National  (Gold)  Bank  of  San  Francisco.  While 
the  Portland  bank  remained  the  only  National 
bank  in  the  State  until  1882,  the  Nationals  are 
now  well  represented,  and  the  State  is  amply  sup- 
plied with  banking  capital.  The  pioneer  bank- 
ers in  both  Oregon  and  Washington  suffered 
from  an  excess  of  opportunity,  or  rather 
from  the  excess  of  natural  resources,  lack  of 
transportation  to  market,  and  scanty  popu- 
lation. The  proper  adjustment  of  these  three 
factors  in  the  production  of  wealth  is  a  slow 
process,  and  while  it  is  going  on  it  requires 
a  high  order  of  banking  skill  to  avoid  ruin- 
ous loss.  In  a  sense,  this  adjustment  is  always 
going  on,  but  the  process  is  particularly  rapid 
while  a  country  is  being  settled;  and  the  bankers 
of  the  Northwest  met  the  usual  number  of  re- 
verses. They  have  emerged  from  the  period  of 
settlement  and  experiment  with  the  banks  ad- 
justed to  the  needs  of  the  community,  and  them- 
selves fully  understanding  those  needs. 

The  States  of  Idaho,  Nevada  and  Arizona  began 
as  mining  territories,  and  then  took  on  stock- 
growing  and  agriculture  as  rapidly  as  the  pop- 
ulation and  transportation  permitted.  Utah  had 
a  special  and  unusual  beginning  in  that  it  was 
settled  by  the  Mormons,  who  were  farmers,  and 
not  miners;  but  mining,  though  delayed,  came 
later  and  is  still  a  leading  industry.  The  banks 
throughout  this  entire  region  developed  as  the 
needs  of  the  country  developed,  being  capitalized 
largely  from  the  products  of  the  mines  and  the 
pastures;  the  specialization  of  banking  from 
merchandising  proceeding  in  the  manner  that 
prevailed  in  the  other  States. 

The  region  which  we  call  the  Pacific  Slope,  ex- 
tending from  Canada  to  Mexico,  and  from  the 
Pacific  Ocean  to  the  Rocky  Mountains,  is  prac- 
tically all  included  in  Federal  Reserve  District  No. 
12;  the  exceptions  being  the  western  portions  of 
Montana  and  Colorado,  and  the  south  eastern 
strip  of  Arizona,  which  is  included  in  District  No. 
11.  The  figures  representing  the  capital,  sur- 
plus and  deposits  of  the  State  and  National  banks 
in  District  No.  12,  taken  from  the  latest  available 
sources,  will  fairly  represent  the  banking  capital 
of  the  region  we  are  considering. 


Btata 


Combined 
Nat  A  State 

i  'ilifornia   $203,148 


Capital,  Surplus  and  Profits 


Washington 

<  iri.'iton    

I'tah    

Idaho     

Nevada   

Northwestern  part  of  Arizona 


40,911 
28.065 
14,313 
10,416 
4.399 
3.339 

$304,591 

Total  Capital,   Surplus   and    Profits 

Total   Deposits 

Nat.  &  State 
Combined 

falifornia    $943,229 

Washington 192.343 

"i-Kon     118,471 

Utah    68,792 

Idaho    39,697 

Nevada    17.262 

Northwestern  part  of  Arizona         16,589 


National 
Banks 
$100,211 

18.6111 

15,061 
5,627 
6,396 

1,482 


State 

Banks 

$102,937 

22,310 

13,004 

M8< 

6,020 

2,319 

1,857 


$148,458  $156,133 

(hundreds  omitt-d  j 

$609,182,000 


Banks 

State 

$6»5,«87 

96,645 

57,955 
43,838 
18,668 
10,446 
10,883 


Banks 

National 

$347,542 

96,698 

60,516 

24.954 

21,029 

6.816 

5,706 


$1,396,383 


Total    Deposits 


$563,261  $833,122 

(hundreds  omitted) 

$2,792,766,000 


56 


BANKS  AND  BANKING 


Bank   Deposits 
(Not  including  "Due  to  Reserve  Agents") 


Combined 
Nat  &  State 
California    $   96,200 


Washington 

19,075 
12,907 
15,173 

Utah     

3,138 

848 

Northwestern  part  of  Arizona 

1,244 

National 

Banks 

$   84,710 

15,159 

9,744 

6,335 

1,638 

748 

692 


State 

Banks 

11,490 

3,916 

3,163 

8,838 

1,500 

100 

1,000 


$148, 5S5  $119,026  $   30,007 

(hundreds  omitted) 

Total  Bank  Deposits $297,618,000 

Individual    Deposits 

Combined        National      State 
Nat.  &  State        Banks         Banks 


California   $847,029 

Washington    173,268 

Oregon    105,564 

Utah    53,619 

Idaho    36,559 

Nevada    16,414 

Northwestern  part  of  Arizona  15,345 

$1,247,798 


$262,832 
81,539 
50,772 
18,619 
19,391 
6,068 
5,014 


$584,197 
91,729 
54,792 
35,000 
17,168 
10,346 
9,883 


Total   Individual    Deposits. 


$444,235  $803,115 

(hundreds  omitted) 

$2,495,148,000 


These  figures,  in  a  sense,  measure  the  financial 
achievement  of  a  region  that  had  its  beginning 
in  the  discovery  of  gold  in  California  in  1849. 
They  indicate  the  substantial  foundation  on 
which  the  resources  of  the  Pacific  Coast  rest,  at 
a  time  when  the  opening  of  the  Panama  Canal 
places  it  in  a  new  relation  to  the  rest  of  the 
world.  The  effect  of  this  change  in  the  cur- 
rents of  the  world's  commerce  on  particular 
places  or  special  industries  on  the  Coast  is  hard 
to  predict,  but  when  we  consider  the  entire  re- 
gion there  can  be  no  doubt.  The  opening  of  a 
direct  water-way  to  the  Atlantic  States,  to  the 
Eastern  Coast  of  South  America  and  to  Europe, 
gives  new  markets  for  the  products  of  the  Coast 
and  those  products  embrace  almost  every  thing 
that  can  be  grown  in  the  temperate  zones  and 
many  that  belong  to  the  tropics. 

At  the  same  time  the  immigration  will  come 
direct  from  Europe  to  the  Pacific  and  the  result 
must  be  the  production  of  conditions  favorable 
to  manufacturing.  The  bar  to  these  industries 
has  hitherto  been  the  lack  of  cheap  power  and 
the  lack  of  cheap  labor.  The  development  of  elec- 
tric power  from  the  unequaled  water  falls  of 
the  Sierras,  and  the  production  of  fuel  oil  in 
large  quantities  (with  enormous  reserves  in  the 
ground),  have  already  made  power  both  cheap 
and  efficient.  Immigration  and  the  natural  in- 
crease in  population  will  provide  labor  which 
should  be  efficient,  and  if  so,  must  be  cheap;  for 
cheapness  is  always  relative. 

The  experimenting  which  is  a  necessary  ac- 
companiment of  pioneer  days  has  been  done; 
the  region  has  been  prospected;  soils  have  been 
analyzed  and  tested;  agriculture  has  become 
more  scientific  and  efficient.  This  all  means  a 
larger  and  safer  field  for  the  banker.  Increase 
in  agricultural  products;  increase  in  manufac- 
tures; cheaper  freights  to  larger  markets,  will 
give  employment  to  increased  banking  capital 
with  the  prospect  of  surer  net  returns. 

The  Federal  Reserve  Bank,  which  is  now  in 
process  of  organization,  will  begin  its  operation 
almost  at  the  time  that  the  opening  of  the  Canal 
will  become  effective.  Under  proper  administra- 
tion, this  bank  should  increase  the  efficiency  of 
the  banking  capital  now  in  use,  and  should  grad- 
ually raise  the  standard  of  commercial  loans,  by 


discriminating  in  favor  of  those  which  are  liquid 
in  character.  It  may  also  help  to  give  the  Pa- 
cific Coast  that  share  of  the  international  busi- 
ness of  the  world  to  which  it  is  rightly  entitled. 
It  is  not  to  be  expected  that  this  country  can  at 
once  secure  even  its  fair  share  of  the  trade  of  the 
Orient.  England  has  been  studying  and  culti- 
vating that  trade  for  centuries,  and  financial  af- 
fairs tend  to  persist  in  established  channels.  Eng- 
land has  also  bought  and  paid  for  her  experience 
in  the  Orient  and  we  will  have  to  do  likewise.  The 
original  capital  investment  of  almost  every  bank 
operating  there  has  been  lost  and  made  good, 
sometimes  more  than  once,  before  the  business 
was  established  and  profitable.  Only  those  banks 
which  can  contemplate  heavy  losses  with  equa- 
nimity should  undertake  the  opening  of  branches 
in  that  part  of  the  world.  Nevertheless  the  Pa- 
cific Coast — the  extreme  West — fronts  the  Orient 
— the  extreme  East — and  inevitably  trade  will 
grow,  and  banking  must  find  a  way  to  follow 
trade. 

We  can  look  forward  to  an  increasing  bank- 
ing business  with  countries  across  the  Pacific, 
and  also  with  South  America,  a  land  of  great  nat- 
ural resources,  where  conditions  more  nearly  ap- 
proximate those  in  our  own  country.  If  rightly 
used,  the  disastrous  war,  now  involving  the  lead- 
ing nations  of  Europe,  is  an  opportunity  which 
will  enable  us  to  make  a  beginning  in  securing 
this  business. 

While  fully  realizing  that  war  is  destruction, 
and  ultimately  benefits  no  one,  we,  on  this  shore 
of  the  Pacific,  can  congratulate  ourselves  on  be- 
ing as  far  removed  as  possible  from  the  scene  of 
the  conflict,  and  on  having  abundant  food  sup- 
plies for  which  the  war  must  create  an  active  de- 
mand. One  local  result  of  the  opening  of  hos- 
tilities is  already  apparent,  and  it  has  shown  us 
that  the  common  use  of  gold  instead  of  paper 
money,  on  which  we  prided  ourselves  as  a  source 
of  strength,  is  really  a  weakness  in  our  financial 
system.  Gold  is  the  current  money  in  San 
Francisco,  and  in  a  very  large  measure  through- 
out the  Coast,  and  the  use  of  reserve  money 
for  counter  payment  leaves  us  particularly 
exposed  at  a  time  when  the  whole  world  is 
scrambling  for  gold.  Fortunately  the  use  of 
currency  has  been  gradually  increasing  and 
the  additional  circulation  provided  by  the  Ald- 
rich-Vreeland  bill  is  being  used  in  counter  pay- 
ments as  far  as  practicable.  The  Federal  Re- 
serve notes  will,  in  due  time,  add  to  the  circulat- 
ing medium  and  we  may  look  forward  to  a  time 
when  circulating  notes  and  silver  will  be  the 
pocket  currency,  and  gold  will  remain  in  the  bank 
vaults  as  a  reserve  against  real  emergencies. 
While  recognizing  that  there  are  no  certainties 
in  financial  affairs,  we  have  confidence  that  a 
country  which  produces  gold  as  well  as  silver, 
copper,  and  many  other  metals;  which  has  the 
world's  finest  merchantable  standing  timber  with- 
in its  borders,  and  which  grows  the  grains  and 
fruits  most  in  demand,  will  be  able  to  retain  gold 
enough  from  international  exchange  to  keep  its 
finances  on  a  sound  basis. 


PUBLIC  UTILITIES 


57 


THE  PUBLIC  UTILITIES  OF  THE  PACIFIC 

COAST 

C.  L.  Cory. 

While  it  may  not  be  true  that  many  public 
utility  corporations  of  the  Pacific  Coast  have  had 
as  many  or  as  serious  problems  to  satisfactorily 
solve  as  similar  companies  in  the  eastern  and 
middle  western  portion  of  the  American  Continent 
have  had  to  consider,  especially  during  the  past 
few  years,  yet  the  conditions  have  been  decided- 
ly different  in  the  West  as  compared  with  the 
East,  and  some  of  these  differences  are  worthy 
of  careful  analysis.  In  this  article  it  shall  be  my 
aim  to  set  forth  concisely  and  yet  somewhat 
fully  the  immediate  past  as  well  as  the  present 
situation,  and  the  conditions  governing  the  prin- 
cipal public  service  utilities. 

What  I  have  to  say  refers  primarily  to  the  ur- 
ban and  inter-urban  electric  railways  rather  than 
either  to  the  transcontinental  or  local  steam  rail- 
roads, but  I  have  in  mind  practically  all  other  pub- 
lic utilities  operating  under  private  ownership, 
such  as  electric  light  and  power,  telephone,  gas — 
both  artificial  and  natural — and  water  companies. 
Excepting  only  the  advent  of  public  regula- 
tion and  control,  which  has  caused  far-reaching 
changes  in  the  methods  of  financing,  construc- 
tion and  operation,  the  most  important  problem 
with  which  the  majority  of  public  service  com- 
panies have  had  to  deal  has  been  that  of  keep- 
ing pace  with  the  rapid  growth  of  business  caused 
by  the  abnormal  increase  in  population  within 
the  districts  served.     The  census  of  1910,  when 
compared  with  that  of  1900  for  the  Pacific  Coast 
states  and   cities,   does  not  really  indicate   the 
present   situation.     The   four  years  since   1910, 
due  to  the  advent  of  public  regulation  and  con- 
trol, and  changed  financial  conditions — decided- 
ly worse  as  far  as  public  service  companies  are 
concerned — has  presented  by  far  more  difficulties 
than  the  previous  decade,  and  the  rate  of  increase 
in  population  has  been  for  the  most  part  at  a  j 
greater  rate  since  1910  than  immediately  prior 
thereto  over  the  larger  part  of  the  Pacific  Coast. 
To  illustrate  the  conditions  by  a  single  instance 
coming  under  my  own  personal  observation,   I 
have  in   mind  a  gas  company  in   the  principal 
city  of  southern  California  which  had  an  invest- 
ment in  its  artificial  gas  properties  in  1910  of 
approximately    $10,000,000,    with    about    90,000 
customers.     Three  years  later  the  total  invest- 
ment had  been  increased  to  $13,000,000,  or  ad- 
ditional capital  required  amounting  to  30  per  cent 
or  at  an  average  rate   of  $1,000,000  per  year. 
During  this  same  three-year  period  the  number 
of  customers   had  increased   practically   50   per 
cent,  or  to  nearly  130,000.  And  it  was  during  this 
period  of  abnormal  growth  that  the  most  rigid  and 
searching  rate  investigations  were  being  continu- 
ously made  by  the  public  regulation  board  or  com- 
mission.    Nevertheless,  to  keep  up  with  the  in- 
creased demands  of  the  community,  it  was  neces- 
sary for  this  company  to  procure  $1,000,000  under 
such   conditions   and   restrictions   as   existed   in 
the  principal  financial  centers  of  the  country. 
To  raise  the  necessary  amount  of  money  to 


meet  such  expenditures  for  extensions  and  en- 
largements anywhere  on  the  Pacific  Coast  is  ab- 
solutely impossible,  and  more  than  one  of  the 
western  public  service  companies  that  have  been 
or  are  now  in  financial  difficulties  would  have 
had  no  trouble  whatsoever  had  it  not  been  for  the 
added  financial  burden  resulting  from  what  would 
always  seem  to  be  desirable,  namely,  a  large,  rapid 
and  permanent  growth  of  new  business. 

A  notable  exception  is  to  be  found  in  the  tele- 
phone situation.  The  great  advantage  of  a  per- 
manent, and  practically  unlimited,  financial  policy, 
founded  upon  truly  ultimate  economic  principles, 
is  here  apparent.  Exchanges,  toll  lines,  and  local 
service  conduits  and  cables  have  been  built  in 
the  minimum  amount  of  time,  and  business  and 
customers  taken  on  as  rapidly  as  the  demand  de- 
veloped. But  it  must  not  for  a  moment  be  as- 
sumed that  the  necessary  new  capital  in  such 
large  amounts  could  under  any  circumstances 
have  been  obtained  in  any  of  the  most  prosperous 
centers  of  population  in  which  such  increased 
demand  for  telephone  service  has  developed. 

In  some  cases  western  public  service  corpora- 
tions have  been  pioneers.     This  is  true  of  the 
generation  of  electrical  energy  with  water  power, 
and  its  transmission  at  high  voltage  over  long  dis- 
tances to  centers  of  use.    Such  systems  may  now 
be  found  in  all  parts  of  the  globe.     In  many  in- 
stances fuel  is  used  as  the  source  of  energy,  the 
large  central  stations  being  connected  with  local 
substations  by  high  voltage  transmission  lines. 
But  twenty  years  ago   the  West   was  just   be- 
ginning to  "get  electric  power  for  nothing"  from 
falling  water,  and  the  conditions  existing  during 
the  last  few  years  have  demonstrated  some  new 
engineering,   economic,   and   financial   principles 
which  are  decidedly  more  sound  than  the  some- 
what false  idea  that  it  is  always  cheaper  to  gene- 
rate electric  power  with  water  than  with  fuel 
consuming  devices  as  prime  movers.    Experience 
has  in  the  West  proven  that  for  the  requirements 
of  the  larger  cities  a  combination  of  water  power 
and  steam  driven  generating  stations  is  the  best 
from  the  standpoint  of  economy,  as  well  as  relia- 
bility of  service.     Notwithstanding  the  introduc- 
tion of  fuel  oil  in  place  of  coal,  which  has  reduced 
the  actual  cost  of  fuel  for  steam  plants  to  less  than 
half,  and  in  some  cases  to  less  than  one-third  the 
cost  of  coal,  the  great  economic  value  of  the 
modern   large   hydro-electric  generating  system 
is  more  apparent  today  in  the  West  than  ever 
before. 

I  do  not  wish  to  convey  the  idea  that  auxiliary 
steam  or  other  forms  of  fuel  consuming  electric 
generating  stations  are  not  desirable  and  neces- 
sary. In  the  majority  of  cases  they,  in  reality, 
increase  the  economy  of  operation  as  well  as 
reliability  of  service.  But  the  greatest  ultimate 
economy,  in  prosperous  as  well  as  lean  years, 
demands,  when  conditions  are  favorable,  the  de- 
velopment of  water  power  systems  for  the  genera- 
tion of  power. 

Except  in  the  change  to  larger  sizes  of  machi- 
nes, the  equipment  of  the  most  modern  hydro- 
electric   generation    station    has    approximately 


58 


PUBLIC  UTILITIES 


the  same  efficiency  as  those  installed  ten  years 
ago.  The  depreciation,  or  reduction  of  worth 
or  value,  as  a  result  of  age,  is  decidedly  less 
for  the  hydraulic  development  and  generating 
equipment  of  a  modern  electric  station  than  for 
a  steam  plant  of  the  same  capacity.  There  is 
no  doubt  that  the  first  cost  of  the  hydro-electric 
system  may  be  from  two  to  three  times  the  cost 
of  a  steam  turbine  plant  of  the  same  capacity, 
but  the  depreciation  upon  the  former  will  be 
much  less,  as  far  as  present  experience  goes, 
than  upon  the  latter. 

But  it  is  during  the  lean  years  that  the  hydro- 


electric system  has  a  decided  advantage  over 
its  competitor,  the  steam  plant.  If  required,  the 
cost  of  operating  the  hydro-electric  plant  for  a 
few  years  can  be  reduced  to  a  minimum,  with 
no  permanent  injury  resulting,  or  excessive 
future  expenses  demanded.  On  the  other  hand, 
however,  the  steam  plant  must  be  constantly 
provided  with  fuel  which  is  permanently  con- 
sumed, resulting  in  an  ever  lessening  of  our 
natural  resources.  In  addition,  the  conserva- 
tion and  storage  of  water  for  the  more  uniform 
operation  of  the  hydro-electric  systems,  not  only 
makes  possible  the  continuous  generation  of  a 


POWEB    ROUSE   AM)   2,000   FT.   INCLINE,   UIG  CREEK   DEVELOPMENT. 


PUBLIC  UTILITIES 


59 


greater  maximum  amount  of  electric  power,  but, 
in  the  majority  of  cases,  makes  available  large 
quantities  of  water  for  irrigation  and  domestic 
use  which  adds  real  wealth  to  the  community. 

In  large  electrical  generating,  transmission 
and  distributing  systems,  both  water  power  and 
steam  power  plants  are  usually  desirable,  each 
to  supplement  the  other,  but,  as  I  not  long  ago 
heard  one  of  the  most  eminent  engineers  on  the 
Pacific  Coast  express  it,  the  greatest  economy  will 
many  times  be  brought  about  by  the  steam  plant 
being  operated  so  as  to  use  the  least  possible 
amount  of  fuel.  In  other  words,  the  operating 
engineer  should  strive  to  attain,  if  possible,  the 
condition  where  the  total  amount  of  fuel  burned 
is  a  mimimum,  rather  than  to  obtain  the  maxi- 
mum efficiency  with  which  the  energy  of  the 
fuel  is  converted  into  electrical  energy;  this,  of 
course,  to  be  the  case  only  when  the  hydro-elec- 
tric generating  plants  will  supply  the  maximum 
demand  without  requiring  excessive  investments 
in  water  storage,  or  other  hydraulic  development. 

The  fundamental  principles  set  forth  above  in 
reference  to  the  generation  of  electric  power  in 
hydro-electric  plants  are  becoming  more  and  more 
Important  in  connection  with  the  production  of 
power  for  all  purposes  on  the  Pacific  Coast,  and 
the  public  utility  companies  have,  during  the 
past  few  years,  consistently  planned  future  de- 
velopments with  this  end  in  view.  From  the  fi- 
nancial side  this  broader  basis  for  meeting  the 
needs  of  the  future  should  not  be  allowed  to  go 
unrecognized.  If  wisely  carried  out  it  will  in- 
crease, to  a  marked  degree,  the  security  which 
will,  for  all  time,  continue  to  exist  in  investments 
in  hydro-electric  systems. 

The  facts  set  forth  above,  in  comparing  the 
ultimate  economy  resulting  from  the  develop- 
ment and  construction  of  hydro-electric  genera- 
tion and  transmission  systems  in  place  of,  or  as 
a  substitute  for,  the  generation  of  electrical 
energy  from  fuel,  indicate  but  one  instance  of 
many  that  might  be  cited  where  the  permanent 
investment  of  a  comparatively  large  sum  of 
money  results  in  a  great  reduction  in  the  main- 
tenance and  operating  costs,  and  also  decidedly 
improves  the  character  of  the  investment  itself. 
There  can  be  no  question,  however,  that  to 
obtain  such  greater  efficiency  and  economy  in 
the  end,  requires  investments  sometimes  many 
fold  greater  than  would  be  absolutely  necessary 
to  accomplish  the  result  desired,  serious  conside- 
ration not  being  given  to  the  increased  main- 
tenance and  operating  costs. 

As  contrasted  with  Eastern  cities,  the  domes- 
tic water  supply  systems  of  the  West  are,  in  most 
cases,  what  are  known  as  gravity  systems,  mean- 
ing thereby  that  the  necessary  supply  of  water 
is  diverted  from  the  mountain  streams,  some- 
times stored,  and  conveyed  to  the  place  of  con- 
sumption through  gravity  conduits  so  that  little, 
if  any,  pumping  is  required,  even  to  supply  the 
higher  levels  where  the  manufacturing  plants 
and  residences  may  be  located.  The  investment 
in  such  gravity  systems,  however,  notably  the 
recently  completed  aqueduct  of  Los  Angeles,  is 
very  large  when  compared  with  a  water  supply 


system  of  the  same  total  capacity,  usually  ex- 
pressed in  millions  of  gallons  daily,  where  the 
water  is  pumped  directly  into  the  mains  with 
comparatively  small  storage,  as  is  the  case  in 
many  of  the  large  cities  along  the  Great  Lakes 
in  the  North  Central  and  Eastern  States. 

In  some  instances,  notably  Los  Angeles  and 
Seattle,  the  bringing  of  domestic  water  from  the 
mountains  into  the  cities  makes  it  possible  to 
generate  considerable  quantities  of  electrical 
energy.  When  this  is  done  it  is,  of  course,  appar- 
ent that  additional  wealth  is  thereby  created, 
and  but  little  reflection  is  required  in  such  cases 
to  convince  one  that  the  greatest  ultimate  effi- 
ciency and  economy,  and  the  greatest  benefit  to 
the  people  of  the  community,  not  only  justifies, 
but  demands,  the  large  investments  required  for 
such  extensive  storage  and  conveying  systems. 

Based  upon  the  above  analysis,  it  is  but  a 
step  to  the  important  conclusion  that,  to  provide 
for  the  necessities,  let  alone  the  conveniences 
and  luxuries  of  centers  of  population,  capital 
must  be  available  in  larger  and  larger  amounts, 
as  the  size  of  the  development  is  increased,  due 
to  the  greater  population  and  growth  of  industry 
in  such  communities.  Rarely,  is  all  of  the  capi- 
tal required  available,  or  to  be  obtained,  in  the 
West.  Many  such  enterprises,  whether  publicly 
or  privately  owned,  are  financed  in  the  East. 
Just  at  the  present  time  there  can  be  no  ques- 
tion but  that  such  enterprises,  the  development 
of  which  is  absolutely  demanded  upon  purely 
economic  grounds,  is  being  held  back  because  of 
the  impossibility  of  obtaining  the  necessary  capi- 
tal from  heretofore  available  sources. 

There  are  probably  a  number  of  reasons  for 
such  restriction  In  the  financing  of  such  per- 
manent physical  developments.  Unquestion- 
ably the  introduction  of  public  service  commis- 
sions, which  have  the  power  to  regulate  the 
financing  as  well  as  the  rates  for  service  render- 
ed, has  had  much  to  do  in  diverting  the  invest- 
ment of  capital  from  such  public  utilities.  It 
is  to  be  hoped,  however,  that  such  conditions 
are  only  temporary,  but  at  least  one  set  of  con- 
ditions which  exist  in  some  of  the  western  states 
must  be  changed  before  there  will  be  any  im- 
provement over  the  present  most  unsatisfactory 
situation.  In  some  states,  the  regulation  of  all 
of  the  public  utilities  is  not  under  the  control  of 
the  state  commission.  Some  of  the  public  ser- 
vice companies  are  under  such  control,  while 
others,  principally  in  the  cities,  are  under  the 
supervision  of  the  public  utility  boards  of  these 
different  cities. 

It  is  certainly  most  unreasonable  to  expect 
capital  to  be  forthcoming  from  any  source,  if 
the  rates  of  a  large  public  utility  in  any  city  are 
subject  to  change  as  often  as  once  a  year,  little 
consideration  being  given  to  the  inevitable 
variations  and  increased  investments,  which  not 
only  may,  but  do  occur  in  different  years.  In 
such  instances,  nothing  can  ever  be  settled,  and 
it  is  foolish  to  presume  that  the  public  is  being 
protected.  Such  is  not  the  case.  The  public  in 
reality  suffers  most.  The  stockholders  in  the 
public  utility  never  know  what  is  coming  next, 


60 


PUBLIC  UTILITIES 


and  if  there  is  anyone  that  is  benefited,  and  I 
doubt  if  the  benefit  in  this  direction  is  material, 
it  is  the  investment  bankers,  who,  in  order  to 
protect  themselves,  increase  interest  rates  to 
such  public  service  corporations,  with  the  result 
that  the  normal  development  of  the  industry  as 
well  as  the  community  is  retarded. 

The  President  of  the  Public  Utility  Commission 
of  one  of  the  largest  states  on  the  Pacific  Coast 
is  responsible  for  the  assertion  that  it  is  the  ob- 
ject of  the  Commission  to  so  do  its  work 
that  any  conservative  business  man  will  prefer 
to  invest  small  sums  that  may  be  entrusted  to 
him  to  invest  for  his  immediate  relatives  and 
friends,  in  the  securities  of  the  public  utility 
companies,  rather  than  resort  to  the  long  con- 
sidered safe  and  conservative  investment  in  mort- 
gages and  deeds  of  trust. 

There  are  many  indications  of  a  decided  im- 
provement in  the  attitude  of  mind  of  the  invest- 
ing public  toward  the  honest,  wise,  and  conser- 
vative public  utility  corporation.  One  of  the 
largest  hydro-electric,  light,  power  and  gas  com- 
panies in  the  United  States,  which  controls  prac- 
tically the  entire  business  of  the  character  car- 
ried on  by  it  in  Central  California,  has,  within 
the  past  six  months,  sold  in  excess  of  $10,000,000 
of  its  preferred  stock  to  its  former  stockholders, 
present  employees,  and  existing  customers.  The 
guaranteed  return  upon  the  investment  is  some- 
what in  excess  of  7  per  cent  per  annum,  and  there 
seems  no  question  whatsoever  but  that  the  money 
so  invested  is  not  only  secure  as  regards  the 
principal,  but  that  the  interest  will  be  forthcom- 
ing promptly  when  due,  and,  in  addition,  the  de- 
velopment of  the  community  very  materially  ad- 
vanced. 

There  are  other  similar  companies  of  less 
magnitude  that  are  being  financed  satisfactorily 
in  the  same  way,  but  the  greatest  possible  devel- 
opment of  such  methods  of  financing  can  only 
be  brought  about  by  the  most  hearty  co-opera- 
tion of  the  public  utility  commissions,  in  their 
actions  in  reference  to  the  financing  and  regu- 
lation of  rates  of  such  public  utilities,  and  the 
directors,  financial  managers  and  operators  of 
the  utility  companies. 

Under  present  conditions,  however,  it  would 
seem  practically  impossible  to  assist  new  enter- 
prises. While  money  may  be  available  for  ex- 
tensions and  improvements  of  the  older,  success- 
ful companies,  new,  and  as  yet  untried,  enter- 
prises on  the  Pacific  Coast  are  receiving  little 
or  no  consideration  from  investors  of  any  class. 
Serious  as  this  situation  may  be,  it  has  its  ad- 
vantages. It  is  unquestionably  very  much  bet- 
ter, at  the  present  time,  to  conservatively  advance 
the  interest  of  heretofore  successful  enterprises 
that  have  been  wisely  administered,  than  to  run 
the  risk  of  attempting  to  make  successful  the 
untried  enterprise,  with  a  new  organization  as 
regards  its  personnel,  which  organization  may,  or 
may  not,  have  the  ability  to  manage  the  enter- 
prise wisely. 

Among  the  many  developments  for  which 
there  is  a  crying  need  upon  the  Pacific  Coast, 
is  the  application  of  the  now  well-known,  suc- 


cessful, and  efficient  methods  of  the  corporation 
to  deal  with  the  production  of  wealth  from  what 
are  now  relatively  non-productive  lands.  Unwise 
speculative  individuals,  with  little  or  no  ability  as 
regards  the  development  of  land,  have,  within 
the  past  few  years,  made  some  monumental 
failures  in  the  western  states.  In  fact,  it  is  some- 
what of  a  question  yet  whether  the  United 
States  Government  itself,  through  its  Reclama- 
tion Service,  has  made  an  unqualified  success  of 
many  of  its  irrigation  enterprises.  The  return 
upon  such  land  projects  will  necessarily  be  slow- 
er than  in  transportation  systems  or  other  simi- 
lar public  service  projects,  but  there  seems  no 
sound  reason  why,  with  proper  management,  a 
great  land  enterprise  might  not  be  operated  suc- 
cessfully, the  same  as  a  transportation  system,  or 
large  manufacturing  company.  In  the  West  the 
development  of  water,  either  by  storage,  pumping, 
or  the  diversion  of  natural  stream  flow,  is  usually 
necessary  in  such  land  projects,  and  it  has  been 
in  connection  with  the  satisfactory  supplying  of 
such  water  that  many  false  estimates  as  to  the 
relation  of  the  cost  to  the  quantity  of  the  water 
obtained  have  been  made.  This  fact,  coupled 
with  the  speculative  character  of  many  land 
schemes,  has  resulted  in  serious  financial  failures. 
The  element  of  time  must  be  taken  into  con- 
sideration, as  it  has  not  been  heretofore,  and  the 
profit  cannot  be  obtained  in  any  other  manner 
than  from  the  land  itself,  as  a  result  of  its  in- 
creased producing  power.  The  usual  plan  of 
purchasing  the  raw  land  in  great  areas  at  low 
figures,  the  development  of  an  adequate  irriga- 
tion system,  and  the  sale  of  such  land  on  easy 
terms  in  small  tracts  at  a  large  apparent  profit,  in 
most  instances,  has  resulted  in  placing  the  bur- 
den of  development  upon  the  purchasers,  who  are 
not  only  the  least  capable  of  overcoming  the  in- 
evitable difficulties  involved,  but  are  not  able  fi- 
nancially to  provide  the  necessary  funds  to  prose- 
cute the  work  with  the  greatest  efficiency. 

Proper  encouragement  from  the  legislative 
and  state  regulation  boards  toward  large  land 
operating  corporations,  conducted  upon  a  far-see- 
ing and  wise  financial  policy  by  capable  adminis- 
trators and  managers,  will  unquestionably  result, 
in  the  near  future,  in  the  success  of  such  agri- 
cultural corporation  enterprises. 

In  conclusion,  it  may  be  said  that,  for  the  most 
part,  the  public  utility  companies  of  the  Pacific 
Coast  are  in  a  sound  financial  condition,  with  ex- 
cellent prospects  for  the  future.  Some  errors 
that  have  been  made  in  the  past  must  be  cor- 
rected, not  only  within  the  management  of  the 
companies  themselves,  but  in  the  attitude  of  the 
public  towards  such  utilities.  The  elimination  of 
unrestricted  competition  has  been  most  benefi- 
cial, and  a  liberal  policy  toward  public  utility  com- 
panies by  the  various  State  Commissions,  coup- 
led with  a  consistent  effort  on  the  part  of  the 
managers  of  the  utilities  to  be  scrupulously  hon- 
est with  all  stockholders  and  to  give  the  best  pos- 
sible service  at  a  reasonable  cost  to  their  custom- 
ers, will  serve  to  attract  the  necessary  capital 
required  for  the  greatest  ultimate  efficiency  and 
economy  in  operation. 


IRRIGATION 


61 


THE  WEALTH  OF  THE  WEST. 


THE   PRESENT  STATUS  OF  WESTERN 

IRRIGATION. 

By  Walter  V.  Woehlke. 

(Contributing  Editor  Sunset  Magazine;  Author  of 

"Water  as  Wealth";  "The  Water  Savers"; 

"The  Land  of  Before  and  After,"  etc.) 

No  other  important  industry  of  the  West  has 
carried  a  heavier  burden  of  adverse  circumstances 
than  irrigation.  Since  its  inception  in  1847, 
when  the  Mormons  under  Brigham  Young  raised 
the  first  American  irrigated  crop,  the  industry  has 
been  beset  by  an  endless  series  of  difficulties,  the 
chief  of  which  was  ignorance.  Though  irriga- 
tion is  one  of  man's  oldest  arts,  the  American  set- 
tlers who  ventured  into  the  West's  arid  valleys 
and  plains  did  not  know  its  ABC.  In  the  construc- 
tion of  dams  and  diversion  works,  in  running  the 
lines  for  the  ditches,  they  had  no  engineering  ad- 
vice ;  no  instruments.  No  precedents  guided  them 
in  the  preparation  of  the  land  for  irrigation  or  in 
the  application  of  water  to  the  crops,  and  the 
accumulated  experience  fund  of  one  district  was 
inaccessible  to  nearly  all  others  on  account  of 
isolation. 

The  miner's  hand  was  raised  against  the  ir- 
rigator. In  the  early  years  the  law,  in  dis- 
putes over  water,  favored  the  miner  at  the  ex- 
pense of  the  farmer.  After  the  miner  abdicated  as 
boss  of  the  West  the  cattleman  usurped  the 
throne,  and  the  cattleman's  most  precious  pos- 
session was  the  water  front;  the  right  of  exclusive 
control,  by  fair  means  or  foul,  over  the  streams  of 
life-sustaining  moisture  crossing  the  parched 
range.    This  possession  he  defended  against  the 


homesteader,  who  was  the  irrigator,  during  a  war 
that  lasted  for  thirty  years. 

The  laws  governing  the  disposition  of  the  pub- 
lic domain,  cut  to  fit  conditions  in  the  humid 
region,  blocked  the  path  of  irrigation  and  en- 
couraged speculation.  Worst  of  all  was  the 
insecurity  of  water  titles.  The  owner  of  a 
water  right  could  never  be  certain  of  its  con- 
tinued possession.  At  any  moment  a  newcomer 
might  divert  half  of  his  water  from  the  stream 
above.  The  enlargement  of  a  ditch  higher  up 
might  leave  the  stream  dry,  the  farmer  ruined. 
Against  this  robbery  he  had  no  redress  except  an 
appeal  to  the  courts.  The  law  considered  a  water- 
right  to  be  personal  property;  there  was  no  public 
supervision  over  the  West's  most  precious  posses- 
sion. The  acquisition  of  public  land  was  regu- 
lated by  ever  more  stringent  provisions.  Records 
were  kept  and  every  care  was  taken  to  protect  the 
title  of  the  freeholder.  Water  titles,  however, 
through  the  utter  lack  of  a  comprehensive  irriga- 
tion code,  were  as  unstable  as  the  element  upon 
which  they  were  based.  Endless  litigation  over 
water-rights  clogged  all  the  courts  in  the  irriga- 
tion states,  but  the  decrees  resulting  from  the  law 
suits  could  not  be  enforced  except  through  more 
litigation  or  by  force  of  arms. 

Despite  these  drawbacks,  serious  enough  to 
choke  a  less  vital  industry,  irrigation  expanded. 
In  1899,  when  irrigation  enterprises  were  first 
made  the  subject  of  detailed  Census  investiga- 
tions, the  West  had  become,  in  point  of  area, 
number  of  enterprises,  length  of  canals  and 
ditches  and  of  capital  invested,  the  third  largest 
irrigated  district  in  the  world,  yielding  the  palm 


62 


IRRIGATION 


only  to  India  and  China.  It  contained  107,716 
farms  irrigating  a  total  area  of  7,527,690  acres, 
and  the  irrigation  works  represented  an  estimated 
capital  outlay  of  $67,482,261.  This  rank  was  at- 
tained in  spite  of  the  fact  that,  in  the  preceding 
decade,  construction  of  new  works  had  been  al- 
most at  a  standstill. 

Between  1870  and  1890  canal  construction  kept 
ahead  of  settlement.  From  1890  to  1902  when 
the  Reclamation  Act  was  passed,  the  number  of 
new  enterprises  was  small.  In  1903  the  revival 
began  and  by  1910  the  total  irrigated  area  had  in- 
creased to  13,738,485  acres,  the  canal  mileage  had 
grown  to  125,591,  6,812  reservoirs  with  a  total 
storage  capacity  of  12  million  acre-feet  had  been 
built,  and  the  capital  invested  in  irrigation  enter- 
prises had  increased  to  $307,866,369.  The  farm- 
ers themselves  owned  eighty  per  cent  of  all  ir- 
rigation systems. 

But  these  figures  do  not  tell  the  whole  of  the 
remarkable  development.  In  1910  construction 
had  again  outstripped  settlement.  Water  was 
available  for  almost  20  million  acres,  yet  fourteen 
million  acres  only  were  irrigated.  And  the  pro- 
jects initiated  and  under  way  in  1910  included 
an  area  of  31  million  acres,  with  an  estimated 
final  investment  of  $424,281,000  in  all  projects 
reporting  that  year. 

These  statistics  indicate  a  continuous,  rapid 
growth  in  the  development  and  utilization  of  irri- 
gation water  but  they  do  not  answer  that  most 
important  question:  Does  irrigation  pay?  The 
correct  answer  to  this  question  not  only  deter- 
mines the  safety  of  the  money  invested  in  com- 
pleted and  uncompleted  irrigation  enterprises; 
it  must  also  have  a  tremendous  influence 
upon  the  future  growth  and  development  of  the 
entire  Pacific  slope  and  upon  every  investment 
made  in  this  territory.  The  ratio  of  the  West's  in- 
dustrial and  commercial  development  must  large- 
ly depend  upon  the  density  of  the  rural  popula- 
tion. A  minimum  of  forty  million  acres  can  be 
added  to  the  present  irrigated  area.  Divided  into 
eighty-acre  farms  (the  average  unit  will  be  nearer 
forty  acres)  this  area  will  support  a  strictly  rural 
population  of  three  and  a  half  million  souls,  plus 
an  equally  large  additional  urban  population — if 
irrigation  pays. 

A  population  of  seven  millions  is  practically 
the  equivalent  of  the  entire  population  through- 
out the  arid  and  semi-arid  West  in  1910. 

The  U.  S.  Census  Office  of  Agriculture  in  1910 
estimated  the  average  value  of  crops  produced  on 
irrigated  land  to  be  $25.08  per  acre;  for  crops 
grown  throughout  the  country  under  humid  con- 
ditions, without  irrigation,  the  estimated  value 
was  placed  by  the  Census  office  at  $17.54  per 
acre,  showing  a  greater  crop  value  per  irrigated 
acre  of  43  per  cent. 

These  estimates,  however,  were  based  solely 
on  the  comparative  yields  of  field  crops;  wheat, 
alfalfa,  barley,  oats,  potatoes,  sugar  beets,  tim- 
othy and  clover.  The  high-priced  crops  such  as 
orchard  fruits,  berries  and  small  fruits,  tropical 
and  subtropical  soil  products,  nuts,  grapes  and 
vegetables  did  not  enter  into  the  computations 


at  all.  Had  these  high-priced  crops  been  added, 
the  crop  value  per  irrigated  acre  would  have 
been  considerably  higher.  Nor  should  these 
products  be  omitted  in  a  discussion  of  the  pres- 
ent and  future  status  of  Western  irrigation,  as 
they  constitute  a  far  larger  percentage  of  the 
total  soil  output  in  the  irrigation  states  than  in 
the  rest  of  the  country.  In  the  North,  accord- 
ing to  the  1910  Census,  the  output  of  vegetables 
and  potatoes,  of  fruits,  nuts,  grapes  and  berries 
aggregates  10.8  per  cent  of  the  total  crop  value; 
in  the  South  the  percentage  is  9.8;  in  the  West 
it  rises  to  24.  For  the  three  Pacific  states,  Cali- 
fornia, Oregon  and  Washington,  the  percentage 
of  these  high-value  products  climbs  to  29.5,  or 
almost  one-third  of  the  total  value  of  all  crops. 
As  a  result  of  this  extensive  specialization  in 
crops  of  more  than  average  value  the  yield  per 
irrigated  acre  in  the  state  of  Washington  reached 
$49.82;  in  California  $43.50;  in  Texas  $45.43  as 
against  a  general  average  of  $25.08  for  all  irri- 
gated land. 

With  systematized  distribution,  with  ener- 
getic selling  campaigns  conducted  by  co-opera- 
tive associations  of  the  growers,  with  laid-down 
costs  in  the  Eastern  markets  reduced  to  those 
districts  located  close  to  tidewater  through 
water  transportation  via  Panama,  with  Europe 
accessible  through  the  Canal  and  with  ample 
refrigeration  capacity  to  handle  the  potential 
traffic  in  perishable  products,  the  proportion  of 
the  West's  high-value  crops  to  the  total  yield 
can  be  raised  to  35  or  40  per  cent  in  the  next  ten 
years  without  filling  domestic  and  foreign  mar- 
kets beyond  the  saturation  point. 

There  is  still  another  factor  bearing  on  the 
profit  of  cultivating  irrigated  land  which  the 
Census  enumerators  did  not,  and  could  not,  take 
into  consideration.  They  could  make  no  dis- 
tinction between  land  having  a  full  supply  and 
that  having  only  a  partial  supply  of  irrigation 
water.  Though  there  were  no  statistical  data 
available  on  the  subject,  the  irrigated  area  which 
has  only  a  partial,  irregular  supply  of  water 
must  by  far  exceed  a  million  acres.  More  than 
sixty  per  cent  of  the  entire  irrigated  area  de- 
pends upon  the  variable  flow  of  the  smaller 
streams  for  its  water.  Many  ranches  merely 
have  a  flood-water  right.  Late  appropriators  on 
fully  developed  streams — and  their  number  is 
legion — must  be  content  with  one  or  two  irriga- 
tions because  the  demands  of  prior  appropriators 
absorb  the  entire  available  flow  long  before  the 
end  of  the  growing  season.  Of  the  508,000  acres 
reported  as  irrigated  from  the  San  Joaquin  River, 
for  instance,  125,000  acres  are  merely  unbroken 
pasture  land  flooded  during  periods  of  high  water. 
The  elimination  of  this  partially  irrigated  land, 
most  of  which  will  eventually  have  a  full  supply 
through  flood-water  storage,  would  materially 
add  to  the  average  acre  yield  of  the  balance. 

If  irrigation  pays,  how  does  it  happen  that  irri- 
gation bonds  to  the  amount  of  $25,000,000  are 
in  default;  that  approximately  five  million  acres 
for  which  water  is  available  lie  idle  and  unproduc- 


IRRIGATION 


63 


tive?  What  has  caused  the  Eastern  investor  to 
lose  faith  in  irrigation  securities?  Why  did  the 
stream  of  settlers  shrink  instead  of  broaden 
during  the  last  three  years? 

The  answer  to  the  last  question  lies  close  at 
hand.  The  investment  in  the  irrigation  systems 
of  the  7,500,000  acres  watered  in  1899  averaged 
$8.89  per  acre;  the  cost  of  the  systems  con- 
structed in  the  following  decade  rose  to  $37  an 
acre.  Still,  this  increase  alone  could  not  have 
checked  settlement.  Far  more  serious  than  the 
higher  cost  of  the  water-right  was  the  increas- 
ing price  placed  upon  the  irrigable  land.  Raw 
land  which,  dry,  would  not  fetch  $10  per  acre  in 
the  open  market  became  the  subject  of  specula- 
tion as  soon  as  a  supply  of  irrigation  water  was 


tiers;  the  Southern  Pacific  Company  cut  the 
appraised  value  of  its  holdings  under  the 
Truckee-Carson  project,  Nevada,  from  $30  to 
$15  an  acre  and  placed  a  similar  restriction  upon 
buyers;  in  the  Rio  Grande  Valley  the  Water 
Users'  Association  obtained  options  on  all  the 
excess  holdings  of  its  members  under  the  Ele- 
phant Butte  project  and  is  disposing  of  the  land 
at  prices  forty  per  cent  lower  than  those  de- 
manded by  private  owners  or  promoters  of  pri- 
vate enterprises  two  years  ago. 

Though  the  reduction  in  the  price  of  raw 
irrigable  land  has  been  universal  throughout  the 
West  in  the  past  two  years,  except  in  those  dis- 
tricts of  suburban  rather  than  rural  character, 
this  drop  in  the  general  price  level  is  insufficient 


!■         WKKKKKm 


IRRIGATED  LAND  IN  THE  "INLAND 

in  prospect  and  passed  from  one  speculator  to  an- 
other until  its  price,  exclusive  of  the  water-right's 
cost,  reached  $75,  $100,  even  $150  per  acre.  In 
Idaho  relinquishments  of  desert  entries  on  land 
which  might  come  under  a  Reclamation  Service 
project  sold  for  as  high  as  $40  an  acre;  lieu-land 
scrip  entitling  the  owner  to  select  and  obtain 
patent  to  public  land  which  was  vaguely,  tenta- 
tively included  in  the  preliminary  survey  of  a 
government  project  brought  $30  an  acre. 

This  upward  movement  of  land  prices  saw  its 
culmination  in  1912.  Since  then  reason  has  re- 
turned and  prices  have  come  down.  Lieu-land 
scrip  has  dropped  to  $10.  The  Northern  Pacific 
railway,  for  instance,  cut  the  price  of  some  of  its 
land  included  in  a  government  project  from  $90 
to  $35  and  refused  to  sell  except  to  actual  set- 


KMI'IKE,"  NEAR  SPOKANE,  WASH. 

by  itself  to  bring  about  the  speedy,  full  utilization 
of  the  raw  land  for  which  water  is  now  available, 
or  will  be  within  the  next  few  years.  It  must  be 
supplemented  by  a  radical  change  in  colonization 
methods. 

The  Reclamation  Act  was  passed  in  1902  after 
a  five  years'  campaign  financed  by  the  Western 
railroads.  One  of  the  principal  arguments  used 
by  its  proponents  was  that  the  federal  govern- 
ment would  not  be  called  upon  to  appropriate  a 
dollar;  that  the  receipts  from  the  sale  of  public 
land  would  create  the  reclamation  fund  and  that 
the  settlers  would  perpetuate  this  fund  by  pay- 
ing back  into  it  the  cost  of  every  project  within 
ten  years  from  the  opening.  In  other  words,  the 
proponents  of  the  measure  asserted  that  the 
homesteader  would  be  able  not  only  to  trans- 


64 


IRRIGATION 


form  a  piece  of  raw  desert  land  into  an  improved, 
self-supporting  farm  within  a  year  from  the  de- 
livery of  the  first  water,  but  that  he  would  also 
be  able  to  retire  the  entire  construction  cost 
within  ten  years.  Following  the  lead  of  the 
Reclamation  Act,  the  promoters  of  projects 
under  the  Carey  Act  likewise  divided  the  pay- 
ment of  water-right  charges  into  ten  annual  in- 
stalments and  issued  ten-year  bonds  against 
them.  In  undertakings  on  private  land  the  re- 
payment period  was  usually  reduced  to  periods 
of  five,  six  or  seven  years. 

Costly  experience  has  since  shown  that  the 
average  settler  requires  not  one  but  five  years 
merely  to  transform  the  desert  land  into  an  im- 
proved, self-supporting  farm;  that  he  cannot 
begin  to  repay  the  cost  of  the  irrigation  system 
until  after  the  fifth  year,  and  that  the  burden  will 
be  too  heavy  on  him  unless  the  total  term  of 
repayment  is  extended  over  a  period  of  at  least 
twenty  years.  On  a  majority  of  the  surviving 
Carey  Act  and  on  all  of  the  Reclamation  Service 
projects  the  twenty-year  extension  in  the  time 
of  payment  has  since  been,  or  will  be,  made.  But 
the  hardships  imposed  upon  the  settlers  through 
the  lack  of  knowledge  on  the  part  of  the  pro- 
moters, the  ill  will  and  prejudice  engendered 
through  the  numerous  settlers  who  lost  their 
land  and  improvements  because  they  could  not 
meet  the  payments,  have  made  colonization  dif- 
ficult and  slow.  When  there  is  added  to  the  an- 
nual water-right  instalment,  to  interest  on  de- 
ferred payments,  to  the  charge  for  maintaining 
and  operating  the  system,  an  annual  instalment 
on  the  cost  of  the  land  itself,  the  task  of  the  set- 
tler becomes  almost  impossible. 

Colonization  methods,  however,  are  beginning 
to  change  in  accord  with  the  new  conditions  and 
the  new  experience.  Promoters  of  irrigation  en- 
terprises have  learned  that  their  success  and 
profit  depend  upon  the  settler's  success.  A  num- 
ber of  the  commercial  irrigation  undertakings 
owning  both  the  land  and  the  water  are  begin- 
ning to  improve  various  units  of  their  holdings 
out  of  their  own  funds,  to  level,  ditch,  seed 
and  crop  the  land  prior  to  the  coming  of  the 
settler,  thus  producing  an  income  whether  the 
land  is  sold  or  not.  In  addition  several  concerns 
are  assisting  the  settler  by  supplying  him  with 
dairy  cows  and  stock  on  favorable  terms.  How- 
ever, this  change  of  the  promoter's  attitude  to- 
ward the  settler  is  sporadic  only.  The  isolated 
instances  of  this  practice  merely  indicate  that 
the  promoter  is  just  beginning  to  see  the  rela- 
tion of  his  own  to  the  settler's  success.  From 
this  phase  of  colonization  to  the  ready-made 
irrigated  farms  of  the  Canadian  Pacific  Railway, 
or  to  the  state  loans  made  by  Australian  boards 
to  new  irrigation  farmers  is  a  long  step.  Ad- 
vance in  this  direction  is  made  difficult  by  the 
restricted  market  for  irrigation  securities. 

The  apparent  inability  of  the  engineering  pro- 
fession to  furnish  a  reliable  estimate  of  a  proj- 
ect's ultimate  cost  is  one  cause  of  defaults  in 
irrigation  securities.  Underestimating  the  cost 
of  an  irrigation  system  is  an  ancient  fault.  It 
almost  disrupted  the  enterprise  of  the  Greeley 


colony,  Colorado's  irrigation  pioneer.  The  col- 
ony's engineer  estimated  that  four  ditches  would 
be  needed  to  water  120,000  acres,  and  that  their 
cost  would  run  to  a  total  of  $20,000.  The  first 
ditch  cost  $30,000  and  was  too  small  to  irrigate 
even  2,000  acres.  When  this  ditch  was  finally 
enlarged  and  finished  it  watered  32,000  acres 
and  cost  $112,000.  Since  that  time  inadequate 
cost  estimates  have  ruined  scores  of  enterprises 
with  monotonous  regularity.  Financed  in  ac>- 
cordance  with  the  engineer's  figures — often  dic- 
tated by  the  promoter,  it  must  be  admitted — 
construction  is  begun,  settlers  appear,  make  im- 
provements and  wait  for  the  water  that  does 
not  come  because  available  funds  are  exhausted 
long  before  completion.  Since  the  settlers  re- 
ceive no  water  or  an  intermittent,  insufficient 
supply,  they  can  pay  neither  interest  nor  prin- 
cipal. Both  bondholders  and  settlers  lose  hope 
and  the  half-finished  project  is  abandoned. 

Such  underestimating  of  cost  is  not  at  all  in- 
frequent. On  the  Twin  Falls  South  Side  project, 
the  largest  and  most  successful  Carey  Act  enter- 
prise in  Idaho,  the  actual  cost  exceeded  the  esti- 
mate by  almost  one  hundred  per  cent,  and  ab- 
sorbed the  entire  profit  expected  from  the  sale  of 
the  water-rights.  But  the  successful  colonization 
of  the  200,000-acre  tract,  together  with  the  activ- 
ity on  nearby  projects  began  under  different 
auspices,  raised  the  value  of  the  townsite  to  such 
an  extent  that  the  promoters'  profits  attracted 
the  attention  and  envy  of  other  promoters  and 
inaugurated  the  long  succession  of  more  or  less 
speculative  Carey  Act  projects  whose  collapse  is 
largely  responsible  for  the  present  odium  at- 
tached to  irrigation  bonds.  On  nearly  all  of  these 
projects  not  only  the  cost  but  the  quantity  of 
the  available  water  was  underestimated.  On 
some  of  these  enterprises  the  engineers  made  no 
measurements,  had  no  records  of  the  run-off. 
They  surveyed  the  stream's  drainage  area,  esti- 
mated the  average  precipitation  over  the  water- 
shed and  from  these  data  computed  the  run-off 
which,  in  turn,  determined  the  area  included  in 
the  project  and  the  cost  per  acre.  One  project 
upon  completion  had  water  for  only  36,000  acres, 
though  water-right  contracts  had  been  sold  to 
cover  65,000  acres.  Upon  investigation  it  was 
found  that  the  engineer  had  included  in  the 
watershed  a  large  area  which  drained  into  an 
entirely  different  stream,  whose  run-off  did  not 
reach  the  project's  ditches  at  all.  The  bond- 
holders and  settlers  paid  heavily  for  this  over- 
sight. 

A  combination  of  insufficient  capital  and 
insufficient  water  ruined  the  Carey  Act  proj- 
ect which  is  now  being  completed  jointly  by 
the  State  of  Oregon  and  the  Reclamation 
Service.  Another  project  in  Idaho  which  had  to 
be  taken  over  and  refinanced  by  the  bondholders 
cost  them  a  million  dollars  because  the  pro- 
moters had  included  in  the  total  area  of  60,000 
acres  a  tract  of  20,000  acres  consisting  of 
rough,  broken  lava  scab  land  unsuitable  for  agri- 
culture. Since  the  contract  with  the  state  called 
for  $50  per  water-right  the  elimination  of  these 
20,000  acres  cost  the  bondholders  a  million. 


IRRIGATION 


65 


Shoestring  promotion  played  its  part  in  the  de- 
moralization of  the  irrigation-bond  market.  The 
Twin  Falls  Land  &  Water  Company  had  its  pro- 
ject eighty  per  cent  completed  and  paid  for  out 
of  its  funds  before  it  issued  bonds,  and  these 
bonds,  owing  to  the  success  of  the  enterprise, 
were  retired  in  short  order.  Several  succeeding 
projects  tried  to  make  up  for  the  promoters'  lack 
of  capital  by  financing  the  enterprise  wholly 
through  bonds  and  through  the  sale  of  water- 
right  contracts  to  settlers  almost  before  construc- 
tion had  begun,  with  disastrous  results,  of  course. 
The  only  large  shoestring  promotion  which  suc- 
ceeded of  late  in  creating  a  prosperous  irrigated 
district  was  the  California  Development  Com- 
pany, and  this  concern,  despite  the  settlers'  suc- 
cess, is  in  the  hands  of  the  receiver.  But  the  pro- 
ject it  initiated,  the  Imperial  Valley,  has  added 
more  than  300,000  acres  to  California's  irrigated 
area  in  twelve  years. 

Underestimation  of  cost,  overestimation  of  the 
available  water,  engineering  mistakes,  faulty  and 
sometimes  fraudulent  financing,  poor  manage- 
ment, inflated  land  prices,  higher  cost  of  water- 
rights  and  wrong  colonization  methods  are  re- 
sponsible for  the  present  status  of  irrigation,  for 
the  bad  odor  of  its  securities  and  for  the  decline 
in  the  demand  for  irrigated  land.  Results  from 
cultivation  not  at  all  up  to  the  level  of  the  rosy 
predictions  likewise  helped  to  cut  down  the  num- 
ber of  settlers. 

The  worst  has  been  said.  It  needed  saying. 
Recognition  of  past  mistakes  and  a  sincere  ef- 
fort to  avoid  them  in  the  future  constitute  the 
only  basis  upon  which  to  renew  building  activ- 
ities. Without  this  recognition  of  past  errors  in 
methods  no  correction  is  possible,  and  without 
this  correction  the  task  of  reassuring  investors, 
of  restoring  confidence  in  irrigation  securities  is 
practically  impossible. 

That  at  least  some  of  the  lessons  contained  in 
past  mistakes  have  been  learned  is  shown  by 
the  adoption  of  model  irrigation  codes  in  half  a 
dozen  Western  states  during  the  last  ten  years. 
Insecurity  and  instability  of  water  titles  con- 
stituted one  of  the  most  discouraging  features  of 
the  situation.  So  long  as  no  efficient  public 
supervision  over  water  filings,  diversions,  and  dis- 
tribution was  exercised,  water  titles  were  in  a 
chaotic  condition,  sound  development  was  ham- 
pered and  restricted  and  litigation  was  encour- 
aged. During  the  last  ten  years  Oregon,  Washing- 
ton, Utah,  Nebraska,  South  Dakota  have  followed 
the  lead  of  Wyoming  and  Colorado  and  adopted 
comprehensive  irrigation  codes  providing  for 
strict  supervision  of  all  water  filings,  for  an  effi- 
cient system  of  recording  priorities  and  for  an  in- 
telligent method  of  determining  the  extent  and 
measure  of  every  water-right  on  all  streams.  The 
California  legislature  likewise  adopted  a  com- 
prehensive irrigation  code  at  its  last  session 
which  aimed  to  place  the  state's  entire  water  re- 
sources under  the  supervision  of  a  special  com- 
mission, but  the  opposition  succeeded  in  side- 
tracking the  law  by  means  of  the  referendum  peti- 
tion. The  act  will  be  submitted  to  the  voters  in 
November  and,  if  approved,  will  become  opera- 


tive immediately.  Its  passage  will  gradually  di- 
minish the  astonishing  volume  of  water  litiga- 
tion that  has  cost  the  Californian  irrigators  mil- 
lions of  dollars,  and  it  will  set  free  for  use  and 
development  vast  amounts  of  flood  water  now 
controlled  by  riparian  owners,  as  the  act  makes 
the  common-law  doctrine  of  riparian  rights  in- 
operative in  the  state. 

The  gradual  change  in  the  attitude  of  the  pro- 
moters toward  irrigation  projects  is  as  important 
and  as  far-reaching  in  its  effects  as  the  adoption 
of  comprehensive  irrigation  codes.  In  the  early 
period  of  extensive  ditch  building,  between  1880 
and  1890  when  English  and  Scotch  capital  was 
freely  invested  in  new  enterprises,  the  irrigation 
companies  endeavored  to  make  a  profit  both  out 
of  the  sale  of  water-rights  and  of  the  water  it- 
self ;  to  retain  possession  of  the  ditch  system  after 
the  water-rights  covering  its  full  capacity  had 
been  disposed  of.  The  majority  of  these  water 
companies  were  disappointed  in  their  expectations 
of  profit  from  operation.  The  power  to  make 
rates  for  the  delivery  of  water  to  the  owners  of 
water-rights  was  vested  in  local  bodies,  usually 
in  the  boards  of  county  commissioners  or  super- 
visors elected  by  popular  votes.  The  water  users 
had  the  votes,  the  water  companies  did  not.  As 
a  result  rates  were  fixed  at  so  low  a  point  that 
the  companies,  as  a  rule,  were  glad  to  turn  the 
ditch  systems  over  to  the  farmers.  One  instance 
is  on  record  in  which  the  county  commissioners 
fixed  a  rate  of  20  cents  per  acre  for  water  de- 
livery despite  the  vehement  protest  of  the  water 
company.  When  the  farmers  took  over  this  sys- 
tem they  found  that  the  actual  cost  of  main- 
tenance and  operation  the  first  year  exceeded 
$1.15  per  acre.  On  the  other  hand,  when  the 
settlers  under  the  Twin  Palls  South  Side  project 
assumed  the  management  of  the  canal  system 
they  cut  the  water  rate  the  first  year  from  90 
cents  to  15  cents  per  acre.  The  following  year 
they  had  to  spend  $300,000  to  put  their  neglected 
ditches  in  order. 

During  the  last  fifteen  years  irrigation  enter- 
prises have  ceased  to  expect  profit  from  opera- 
tion. The  sale  of  the  water-right,  of  the  land,  or 
of  both,  is  the  only  source  of  profit  in  the  modern 
undertaking.  Hitherto,  periods  of  five  to  ten  years 
were  considered  ample  for  the  repayment  of  cap- 
ital investment  plus  profit,  but  the  experience  of 
the  last  six  years  has  shown  the  fallacy  of  this 
assumption.  A  twenty-year  period  instead  of 
five  years  is  now  accepted  as  the  minimum.  This 
change  will  shortly  make  itself  felt  in  a  stimula- 
tion of  the  demand  for  irrigated  land,  and  there 
are  indications  showing  that  this  increase  in  the 
time  of  payment  will  not  remain  the  only  conces- 
sion to  the  settler.  Financial  assistance  to  the 
colonist,  either  in  the  form  of  improved  land  or 
in  loans  for  improvements  and  the  purchase  of 
stock,  is  gaining  favor,  but  it  is  always  accom- 
panied by  a  careful  selection  of  the  beneficiaries 
from  the  mass  of  the  applicants. 

A  marked  tendency  toward  stricter,  more  ef- 
ficient public  supervision  over  private  and  quasi- 
public  irrigation  enterprises  is  even  more  import- 
ant in  the  ultimate  restoration  of  confidence  in 


66 


IRRIGATION 


IRRIGATING  ORANGES,  LOS  ANGELES   COUNTY,   CAL. 


irrigation  securities.  A  large  share  of  respon- 
sibility for  the  failure  of  numerous  Carey  Act 
projects  must  be  placed  upon  the  shoulders  of 
state  officials  who  failed  to  protect  the  interests 
of  both  investors  and  settlers ;  who  lent  the  name 
of  the  state  to  the  enterprises  and  then  allowed 
the  promoters  to  do  as  they  pleased.  Adequate 
preliminary  investigation  of  the  engineering  fea- 
tures; determined,  vigilant  supervision  over  both 
construction  and  finances;  insistence  upon  ade- 
quate bonds;  refusal  to  allow  the  sale  of  water 
contracts  before  water  is  ready,  would  have  fore- 
stalled ninety  per  cent  of  the  failures.  Though  the 
collapse  of  numerous  projects  has  jarred  the  state 
officials  into  action  and  though  a  recurrence  of 
the  old  laissez-faire  conditions  on  a  large  scale  is 
impossible,  the  change  has  come  too  late.  In  fu- 
ture large  irrigation  enterprises,  the  state,  no  mat- 
ter how  efficient  its  supervision,  will  have  to  lend 
more  than  its  name ;  it  will  have  to  lend  its  credit 
as  well  and  guarantee  the  bonds  of  the  project  to 
finance  the  enterprise,  for  the  memory  of  the 
investor  is  longer  than  is  usually  supposed. 

The  California  legislature  in  1887  passed  the 
Wright  Act  authorizing  the  formation  of  irri- 
gation districts  which  were  given  the  power  to 
issue  bonds  for  the  construction,  improvement 
or  enlargement  of  irrigation  systems.  Forty-one 
districts  were  organized  under  this  law.  All  of 
them  issued  and  sold  bonds;  most  of  them  de- 
faulted in  the  payment  of  both  interest  and  prin- 
cipal. Inexperience,  mismanagement,  politics,  at- 
tacks upon  the  legality  of  the  bonds  by  the  large 


landholders  opposed  to  the  formation  of  the  dis- 
trict, all  brought  about  the  financial  fiasco. 
That  was  twenty-five  years  ago.  Since  then 
the  Wright  Act  has  been  strengthened,  its 
weak  places  have  been  reinforced,  two  large  dis- 
tricts have  demonstrated  the  successful  work- 
ing-out of  the  new  law,  but  nevertheless  the  mem- 
ory of  the  initial  failure  still  lingers  and  irriga- 
tion-district bonds  are  a  drug  on  the  market. 
Though  the  state  has  placed  the  district  bond  on 
a  legal  parity  with  municipal  bonds,  still  these 
securities  are  unsalable  except  at  a  heavy  dis- 
count. 

It  is  an  anomalous  situation.  In  the  Turlock- 
Modesto  irrigation  district,  for  instance,  the  pros- 
perity, yea  the  very  life  of  the  two  thriving  towns 
is  based  on  the  success  of  the  water  system,  on 
the  prosperity  of  the  district.  Without  the  water 
supplied  to  the  dense  rural  population  by  the  dis- 
trict7  the  towns  would  revert  to  the  condition  of 
insignificant  hamlets.  The  municipal  and  school 
bonds  of  these  communities  have  always  sold  at 
par  or  better;  the  basic  securities,  the  bonds  of 
the  district,  supported  by  the  power  to  levy  taxes 
both  on  city  and  country  property,  have  gone  beg- 
ging far  below  par. 

Despite  this  deep-seated  prejudice  the  irriga- 
tion-district plan  of  financing  and  carrying  out 
irrigation  projects  will  probably  supplant  private 
initiative  in  the  larger  enterprises  of  the  future. 
There  are  two  reasons  in  favor  of  the  district 
plan.  In  the  first  place  it  will  be  impossible  for 
years  to  come  to  market  bonds  issued  by  private 


IRRIGATION 


67 


irrigation  enterprises  of  large  size,  no  matter  how 
strict  public  supervision  over  these  enterprises 
may  become.  Through  proper  legislation  pro- 
viding for  stringent  preliminary  investigation  by 
competent,  non-political  commissions  of  technical 
and  legal  experts,  unsound  district  projects  can 
be  practically  eliminated,  and  the  various  West- 
ern states  can  well  afford  to  lend  their  credit  to 
feasible,  sound  enterprises  under  the  district  plan, 
either  by  guaranteeing  the  interest  on  the  dis- 
trict bonds  or  by  making  the  issues  incontestable 
before  they  are  placed.  This  method  presupposes 
rigid  state  supervision  over  all  district  projects 
from  their  inception  to  their  completion. 

The  chief  irrigation  development  of  the  future, 
however,  is  predicated  upon  an  extension  of  Fed- 
eral activities.  It  has  been  shown  that  the  aver- 
age cost  per  acre  rose  from  $9  for  enterprises 
initiated  prior  to  1900  to  $37  for  the  projects  com- 
pleted in  the  subsequent  decade.  The  bulk  of  the 
irrigable  land  as  yet  unreclaimed  must  depend 
for  its  water  supply  upon  the  West's  large  rivers ; 
upon  the  Colorado,  the  Green,  the  Grand  and 
their  important  tributaries;  upon  the  Sacra- 
mento and  the  Columbia.  The  magnitude  of  the 
task  involved  in  storing  the  flood  waters  of  these 
rivers,  of  diverting  the  storage  and  placing  it  upon 
the  high-lying  irrigable  lands  makes  the  under- 
taking impossible  either  for  private  or  state  en- 
terprise. To  place  water  from  the  deep  gorge  of 
the  Columbia  river  upon  the  two  million  fertile 
acres  of  the  Horse  Heaven  plateau  in  central 
Washington,  for  instance,  would  require  the  con- 
struction of  a  main  canal  five  hundred  miles 
long.  On  the  Colorado  river  water  must  be  stored 
in  Colorado  and  Wyoming  for  use  in  Arizona  and 
California.  Comprehensive  development  of  the 
Sacramento  river  watershed  is  possible  only 
through  state  and  federal  co-operation.  It  will 
be  some  time,  though,  before  the  scope  of  the 
U.  S.  Reclamation  Service  can  be  enlarged,  be- 
fore a  method  of  co-operation  between  states, 
districts  and  the  national  government  can  be 
worked  out. 

In  the  meantime  the  most  pressing  problem 
before  the  irrigated  West  consists  of  the  coloni- 
zation and  cultivation  of  the  6,000,000  acres  for 
which  water  is  now  ready.  Almost  $200,000,000 
are  tied  up  in  these  idle  parts  of  the  various  en- 
terprises. By  extending  payments  over  a  mini- 
mum of  twenty  instead  of  five  years,  by  reliev- 
ing the  settler  of  all  charges  except  for  mainte- 
nance and  operation  the  first  four  years,  by  judi- 
cious loans  for  improvements  or  for  the  purchase 
of  stock,  the  rate  of  settlement  can  be  increased 
materially.  The  first  part  of  this  colonization 
program  promises  to  be  adopted  almost  generally 
on  new  enterprises  throughout  the  West,  and  the 
example  of  the  Canadian  Pacific  Railway  is  open- 
ing the  eyes  of  irrigation  managers  to  the  need 
and  effectiveness  of  a  first-aid-to-the-new-settler 
plan.  The  prospect  of  a  speedy  settlement  of 
the  fallow,  unproductive  area  under  existing 
ditches  is  better  than  it  has  been  for  the  past  two 
years  on  account  of  deflated  prices  of  raw  land 
and  a  decided  drop  in  speculation  and  specula- 
tive values. 


Compared  with  the  rest  of  the  West,  California 
has  always  occupied  a  place  apart  in  its  economic 
development.  Two  features  distinguish  the 
growth  and  development  of  Californian  irrigation 
from  the  development  of  the  industry  in  other 
parts  of  the  West.  One  of  the  great  obstacles 
in  financing  irrigation  enterprises  outside  of  Cali- 
fornia has  been  due  to  arid  conditions  and  to 
the  public  ownership  of  the  land.  Arid  land  with- 
out water  has  no  value  as  security,  nor  can  it 
be  given  as  security  for  a  loan  until  title  has 
passed  from  the  United  States  to  the  entryman, 
and  reclamation  by  irrigation  is  a  condition  pre- 
ceding the  granting  of  patent.  In  California, 
however,  by  far  the  largest  part  of  the  irrigable 
area  is  only  semi-arid,  will  produce  grain  and 
forage  crops  without  irrigation  and  therefore  has 
earning  power  and  value  prior  to  irrigation.  Again, 
the  bulk  of  this  land  has  been  in  private  hands, 
producing  revenue  for  fifty  years.  And  where 
the  land  was  both  arid  and  in  public  ownership, 
as  in  the  Imperial  Valley,  construction  was  so  in- 
expensive that  the  notes  and  cash  payment  of  the 
entrymen,  averaging  $10  per  acre,  sufficed  to 
build  the  canal  system.  Furthermore,  California's 
climate  made  possible  the  cultivation  of  a  tre- 
mendous range  of  high-priced  products  almost 
from  one  end  of  the  state  to  the  other,  a 
distance  of  800  miles.  As  a  result  of  these  favor- 
able circumstances,  and  in  the  face  of  the  chaotic 
conditions  of  water  titles,  California  has  been  able 
to  finance  its  irrigation  projects  without  going 
far  beyond  its  borders.  The  thousands  of  mutual 
water  companies,  for  instance,  always  find  a 
ready  market  for  their  securities  within  the  state. 
Eastern  bond  buyers,  judging  the  value  of  a  bond 
by  the  net  earnings  of  the  concern  issuing  it, 
rarely  touch  these  securities  because  the  mutual 
water  companies,  being  co-operative  in  their 
organization,  show  no  earnings,  their  revenues 
being  raised  by  assessments  upon  their  shares. 
Experience  has  shown,  however,  that  the  moral 
security  behind  these  bonds  is  excellent;  namely, 
the  earning  power  of  fully  developed  ranches  and 
orchards  whose  owners  know  that  the  mortgaged 
water  is  the  basis  of  their  prosperity. 

Still,  California  has  by  no  means  been  exempt 
from  loss  through  speculative  promotion  of  ir- 
rigation enterprises.  It  is  only  necessary  to  men- 
tion the  Solano  project,  partially  financed  with 
funds  taken  from  the  treasury  of  the  United  Rail- 
roads of  San  Francisco,  to  illustrate  conditions. 
But  whatever  loss  has  been  occasioned  through 
irrigation  failures  in  California  has  fallen  largely 
upon  the  promoters,  their  associates,  and  cred- 
|  itors  and  upon  the  purchasers  of  land;  the  East- 
ern market  has  been  in  no  wise  affected. 

Nor  has  the  Eastern  investor  been  called  upon 
to  finance  the  large  area  that  has  been  reclaimed 
by  wells  during  the  last  ten  years.  In  1910  13,906 
pumping  plants  and  5,070  flowing  wells  irrigated 
a  total  of  622,025  acres.  Since  then  well  irriga- 
tion, born  and  perfected  in  the  southern  third 
of  California,  has  made  remarkable  strides.  Where 
a  lift  of  30  feet  was  considered  the  practicable 
limit  ten  or  twelve  years  ago,  improvement  in  the 
i  efficiency  of  pumps  and  internal  combustion  en- 


68 


IRRIGATION 


gines,  reduction  in  the  cost  of  liquid  fuel,  substi- 
tution of  distillate  and  tops  for  gasoline,  the  ad- 
vent of  cheap  hydro-electric  power  in  the  irriga- 
tion field  have  doubled  the  economic  range  of  the 
lift  even  for  field  crops.  Flowing  artesian  wells 
were  discovered  in  numerous  districts  of  Nevada, 
California,  Arizona,  New  Mexico  and  Washington. 
Throughout  the  great  interior  valleys  of  Cali- 
fornia pumping  plants  began  to  water  areas 
which,  under  gravity  systems  depending  upon 
stored  flood  water,  would  have  to  wait  years  for 
their  full  development. 

Judging  from  the  performance  in  the  past  five 
years  the  most  profitable  employment  of  capital 
In  irrigation  enterprises  within  the  immediate 
future  will  be  in  the  outright  purchase  of  water- 
bearing land,  in  the  installation  of  well-irriga- 
tion systems  watering  small  units  which,  seeded 
to  alfalfa,  will  be  colonized  more  speedily  than 
large  irrigated  tracts  without  improvements.  How 
large  this  potential  field  is  may  be  judged  from 
the  fact  that  in  India  16,000,000  acres  are  irri- 
gated from  wells. 

From  the  foregoing  it  appears  that  the  period 
of  private,  largely  speculative  irrigation  enter- 
prises in  the  West  is  almost  over.  The  bulk  of 
the  new  work  must  in  the  future  be  undertaken 
either  by  the  state  and  the  federal  governments 
or  by  irrigation  districts  with  federal  or  state  aid 
and  supervision.  Not  only  does  the  condition  of 
the  bond  market  make  such  a  change  necessary 
in  order  to  give  the  cautious  investor  and  invest- 
ment banker  a  guarantee  against  default,  but  the 


very  nature  of  the  work  points  to  the  neces- 
sity of  public  rather  than  private  enterprise. 
Most  of  the  remaining  large  projects  will  at  least 
be  as  costly  per  acre  as  the  works  so  far  put  up 
by  the  Reclamation  Service.  Had  the  Reclama- 
tion Service  work  been  financed  through  private 
channels,  the  bonds  based  on  the  settlers'  prom- 
ise to  repay  the  construction  charges  in  ten 
years  would  have  been  in  default  long  ago.  Even 
admitting  that  private  work  can  be  done  at  small- 
er cost  than  public  work,  the  acre-charge  of  the 
greatest  remaining  projects  must  of  necessity  be 
so  high  and  the  unproductive  period  so  long  that 
private  capital  will  hesitate  in  entering  the  field 
except  under  public  guarantees,  irrespective  of 
the  present  position  of  irrigation  securities.  And 
the  trend  of  all  the  agencies  working  for  the  de- 
velopment of  the  Pacific  Slope's  irrigation  re- 
sources is  directed  toward  the  harmonizing  of 
federal,  state  and  district  activities. 

It  must  not  be  understood  that  private  capital 
and  enterprise  without  public  guarantees  wiU 
cease  to  participate  entirely  in  future  work.  Far 
from  it.  In  California  the  irrigated  area  was 
lifted  to  3,250,000  acres  without  public  aid  or 
supervision  of  any  kind  and  several  million  addi- 
tional irrigated  acres  will  be  added  solely  through 
private  undertakings.  When  it  is  considered, 
however,  that  the  total  area  which  will  ultimate- 
ly be  irrigated  in  the  state  is  close  to  ten  million 
acres  it  will  be  seen  that  the  commonwealth 
must  inevitably  play  a  most  important  role  in 
the  work  before  the  task  is  finished. 


COTTON  IN  THE  IMPERIAL  VALLEY.  CAL..  RECLAIMED  BY  IRRIGATION  FROM  DESERT  WASTE. 


WATER  POWER 


69 


WATER    POWERS  OF   THE    PACIFIC   COAST. 
By  W.  E.  Herring,  of  Stone  &  Webster. 

The  Pacific  Coast  presents  many  unusual  fea- 
tures in  connection  with  water  power  develop- 
ments. The  Cascade  mountains,  starting  at  the 
British  Columbia  line  and  extending  southerly 
through  Washington  and  Oregon,  giving  place  to 
the  Sierra  Nevada  mountains  extending  southerly 
through  California,  parallel  the  Pacific  Coast  line 
at  a  distance  of  100  to  125  miles.  Streams  rising 
in  these  ranges  of  mountains  and  flowing  west- 
ward are  fed  by  numerous  glaciers  and  snow 
fields,  and  fall  from  average  elevations  of  from 
six  to  ten  thousand  feet  to  the  flat  plateau  coun- 
try, the  average  elevation  of  which  is  about  500 
feet.  This  fall  takes  place  within  comparatively 
few  miles  and  an  enormous  head  can  be  obtained 
on  any  of  the  streams.  In  the  Pacific  Northwest 
there  is  an  average  annual  precipitation  of  ap- 
proximately 100  inches  along  the  Cascade  Range, 
while  in  California  the  precipitation  is  very  much 
less. 

Owing  to  topographical  and  physical  condi- 
tions, the  Pacific  Coast  section  naturally  divides 
itself  into  several  entirely  distinct  territories  or 
zones.  At  the  north  end  is  the  Puget  Sound 
country,  extending  from  Olympia  on  the  south  to 
the  Canadian  line  on  the  north,  a  distance  of  ap- 
proximately one  hundred  and  seventy-five  miles, 
all  bordering  on  Puget  Sound,  and  including  the 
cities  of  Seattle,  Tacoma,  Everett,  Bellingham 
and  Olympia.  To  the  south,  and  inland  one  hun- 
dred and  twenty  miles  from  the  ocean,  border- 
ing the  Willamette  River,  a  few  miles  above  the 
confluence  with  the  Columbia,  is  Portland  and  the 
immensely  rich  land  adjacent  to  it  on  the  south, 
which  supports  several  good  sized  cities.  Farther 
south,  still  west  of  the  mountains  but  yet  not 
bordering  on  the  ocean,  is  the  famous  Rogue 
River  Valley,  and  to  the  south  of  this  in  California 
is  the  Sacramento  Valley  extending  down  to  Sac- 
ramento. Beyond  is  the  immense  territory  ad- 
jacent to  San  Francisco,  and  the  San  Joaquin  Val- 
ley to  the  south.  Cut  off  entirely  from  this  sec- 
tion is  the  region  in  and  around  Los  Angeles. 

Economic  reasons  require  that  each  of  these 
3e<  lions  be  treated  as  a  separate  entity,  and  be 
supplied  with  its  various  public  utilities,  inde- 
pendent of  the  other  communities.  At  first  these 
various  sections  were  entirely  separated  from 
one  another,  but  as  time  elapsed,  connecting  rail- 
ways were  found  to  be  a  necessity,  and  today  they 
are  well  served  in  this  respect.  The  distance  be- 
tween the  different  localities,  however,  prohib- 
ited their  being  served  as  a  whole  by  any  one 
public  utility,  and  hence  the  present  situation. 

The  Puget  Sound  country  is  served  by  the 
Puget  Sound  Traction,  Light  &  Power  Company, 
whose  total  installation  is  107,907  horsepower, 
of  which  73,667  horsepower  is  produced  by  water 
power  plants  and  34,240  horsepower  by  steam 
plants.  The  total  capitalization  is  approximately 
$71,000,000.  The  Portland  Railway,  Light  & 
Power  Company  supplies  the  territory  from  Port- 
land to  Salem,  Oregon.     Its  total  installation  is 


81,907  horsepower  and  its  total  capitalization  is 
approximately  $60,000,000.  The  California  Ore- 
gon Power  Company  operates  in  the  Rogue  River 
Valley  in  Oregon,  and  in  the  northern  part  of  Cali- 
fornia, with  a  total  installation  of  approximately 
20,000  horsepower.  The  Pacific  Gas  &  Electric 
Company  supplies  all  of  central  California,  its 
total  installation  being  233,900  horsepower,  of 
which  123,700  horsepower  is  generated  by  hydro- 
electric plants.  The  Southern  California  Edison 
Company  supplies  Los  Angeles  and  vicinity  and 
has  a  total  installation  of  119,800  horsepower,  of 
which  only  42,500  horsepower  is  generated  by 
water.  In  California  there  are  also  a  number 
of  companies  which  supply  power  in  large  quan- 
tities to  distributing  companies.  Among  these 
are  the  Great  Western  and  the  Northern  Cali- 
fornia Power  Companies  with  plant  capacities  of 
approximately  90,000  and  50,000  horsepower;  and 
the  Pacific  Power  &  Light  Corporation  with  156,- 
000  horsepower  of  which  80,000  horsepower  is 
hydro-electric.  In  addition  to  these  companies 
there  are  others  which  supply  both  light  and 
power  to  the  smaller  communities. 

Across  the  western  barricade  of  mountains 
from  the  immense  territory  just  described,  and 
reaching  back  inland  to  the  East  are  numerous 
fertile  areas,  some  well  populated,  others  more 
sparsely  settled,  which  are  supplied  by  various 
operating  companies.  The  territory  in  and  around 
Spokane,  Washington,  is  served  by  the  Washing- 
ton Water  Power  Company,  whose  total  capacity 
is  108,250  horsepower,  of  which  89,250  horse- 
power is  water  power.  The  basin  of  the  Colum- 
bia River,  and  the  country  extending  east  to  the 
limits  of  the  State  of  Washington,  is  supplied  by 
the  Pacific  Power  &  Light  Company,  with  a 
total  installed  capacity  of  22,100  horsepower. 
Central  Oregon  is  so  thinly  populated  that  no 
large  operating  company  has  attempted  to  supply 
it.  In  California,  Truckee,  and  also  the  neighbor- 
ing section  of  the  western  part  of  the  State  of 
Nevada,  is  covered  by  The  Truckee  River  Gen- 
eral Electric  Company.  Further  south,  the 
Southern  Sierra  Power  Company  supplies,  from 
its  various  plants  on  Bishop  Creek,  the  adjoining 
territory  in  California,  and  its  transmission  lines 
extend  to  various  mining  communities  and  into 
the  Imperial  Valley  district.  The  Company  has 
one  of  the  longest  transmission  fines  in  the  world. 

The  growth  of  the  Pacific  Coast  States  is  so 
well  known  that  not  more  than  passing  men- 
tion need  be  made  of  it.  In  the  ten  years  from 
1900  to  1910,  the  remarkably  increasing  demand 
for  electric  power  could  not  be  met  by  the  oper- 
ating companies.  The  earlier  types  of  construc- 
tion for  the  water  power  plants  are  not  the  recog- 
nized standard  of  construction  at  the  present  day, 
but  at  that  time  they  fulfilled  the  purpose  admir- 
ably, with  exceptions  that  are  now  well  known. 
Lack  of  storage  facilities  was  one  of  the  com- 
mon causes  of  inability  to  supply  the  constantly 
increasing  demand  for  electric  power.  This  was 
overcome,  in  some  measure,  by  the  construction 
of  steam  auxiliary  plants,  to  tide  over  the  peak 
period.      The  later  hydro-electric   developments 


70 


WATER  POWER 


which  have  been  made,  have  ample  storage  facil- 
ities which  will  obviate,  to  a  great  extent,  the 
necessity  of  these  steam  relays;  particularly  is 
this  true  where  more  than  one  water  power  plant 
feeds  into  a  transmission  line.  With  only  one 
such  plant,  the  steam  relay  is  needed  to  guar- 
antee continuity  of  service;  but,  with  several 
water  plants,  it  is  not  so  essential.  In  some  cases, 
the  expensive  steam  auxiliary  plants  provided 
in  the  early  stages  of  development  are  now  prac- 
tically a  dead  investment  so  far  as  present  rev- 
enue producing  capacity  is  concerned ;  as  a  meas- 
ure, however,  of  guaranteed  continuity  of  serv- 
ice they  are  worth  the  money  invested.  The 
northern  portion  of  the  Pacific  Coast  differs  very 
materially  from  the  southern  portion  in  this  re- 
spect. On  many  of  the  streams  in  the  southern 
portion  the  run-off  is  not  sufficiently  large  to  pro- 
vide storage  of  any  size,  while  on  others  prior  ap- 
propriation of  water  for  irrigation  or  for  mining 
purposes  prevents  storage  of  any  magnitude.  In 
the  northern  part,  however,  these  conditions  do 
not  exist.  The  run-off  in  the  streams,  owing  to 
the  fact  that  the  precipitation  is  very  heavy,  is 
much  greater. 

As  stated  above,  up  to  1910  the  operating  com- 
panies had  much  difficulty  in  obtaining  capacity 
needed  for  the  demand  upon  their  plants.  Since 
that  time  conditions  have  changed  to  a  certain 
extent;  the  markets  have  become  more  nearly 
saturated  with  power,  and  there  has  not  been  the 
demand  that  existed  prior  to  that  time.  Forecast 
curves  made  as  late  as  1909  and  1910  by  various 
operating  companies  showed  an  average  annual 
increment  that  seemed  to  prove  that  much  great- 
er capacities  would  be  needed  in  the  next  few 
years.  It  is  not  possible  for  a  public  utility  com- 
pany to  wait  until  the  demand  exists  for  power 
before  constructing  its  plant,  but  it  is  necessary 
for  it  to  look  ahead  a  few  years,  estimate,  as 
closely  as  possible,  the  power  that  will  be  re- 
quired, and  anticipate  the  demand.  Following  this 
procedure,  the  various  companies  provided  addi- 
tional capacities  and  made  arrangements  for  new 
plants  to  take  care  of  the  load  which  they  ex- 
pected to  have  in  the  succeeding  years.  The 
forecast  curves  did  not  follow  their  upward  trend, 
but  flattened  out,  and  practically  all  of  the  com- 
panies on  the  Coast  now  find  that  they  have  a 
surplus  of  power.  This  condition  is  not  so  marked 
with  the  companies  in  California,  for  the  reason 
that  new  uses  have  been  found  for  power  which 
cannot  be  found  in  the  Pacific  Northwest.  Pump- 
ing water  for  irrigation,  dredging,  and  similar 
purposes  in  California  has  served  to  consume  a 
large  amount  of  power,  which  at  the  time  the 
plants  were  constructed  was  not  counted  upon. 
So  far  as  the  Pacific  Northwest  is  concerned, 
the  three  large  operating  companies  find  them- 
selves with  an  excess  in  their  present  operating 
plants  of  from  thirteen  thousand  to  twenty-five 
or  thirty  thousand  horsepower.  If  the  capacities 
of  their  steam  plants  are  included,  their  sur- 
plus power  ranges  from  thirty-five  to  forty  thou- 
sand horsepower,  up  to  as  much  as  fifty  and 
sixty  thousand  horsepower. 


As  a  result  of  this  condition  the  largest  oper- 
ating company  in  the  Northwest  has  attempted 
by  means  of  a  very  aggressive  compaign,  to  in- 
terest manufacturers  in  other  parts  of  the  coun- 
try in  locations  in  the  Pacific  Northwest.  The 
result  has  been  rather  gratifying.  An  en- 
deavor of  this  kind  is  entirely  new  to  the  power 
companies,  and  the  results  will  be  noted  with 
interest.  In  line  with  all  the  other  public  utility 
corporations  operating  in  this  country,  the  Pa- 
cific Coast  companies  are  endeavoring  at  all  times 
to  build  up  the  communities  which  they  serve, 
realizing  that  upon  these  communities  depends 
the  success  or  failure  of  their  particular  enter- 
prises. The  amount  of  new  capital  needed  for 
electrical  development  in  California,  Washington 
and  Oregon  in  the  next  ten  years  is  estimated  at 
anywhere  from  $150,000,000  to  $250,000,000,  de- 
pending largely  upon  the  number  of  new  indus- 
tries that  can  be  brought  to  this  section. 

In  practically  all  of  the  Coast  cities  the  value 
of  the  manufactured  products  is  less  than  in  a 
majority  of  cities  of  smaller  size  in  the  eastern 
part  of  the  country.  With  a  rapidly  increasing 
population,  with  the  opening  of  the  Panama 
Canal,  and  with  the  opening  of  Alaska,  it  is  be- 
lieved that  this  condition  will  be  changed.  Local 
conditions  will  have  to  be  taken  into  considera- 
tion before  any  prediction  can  be  made  as  to  the 
extent  to  which  the  Coast  will  become  a  manufac- 
turing centre.  The  four  vital  elements  for  in- 
dustrial pre-eminence  are:  a  market  for  the  prod- 
uct manufactured,  transportation,  labor,  and  raw 
materials,  and,  to  a  lesser  extent,  the  cost  of 
power.  The  location  of  the  industry  naturally 
depends  to  a  great  extent  upon  the  article  manu- 
factured. It  is  believed  that  the  predominance 
of  raw  materials  in  the  Pacific  Northwest,  the 
extremely  cheap  power  which  can  be  had  there, 
the  splendid  transportation  facilities  offered  both 
by  rail  and  water  to  all  points  along  the  Pacific 
Coast,  as  well  as  to  eastern  points,  will  have 
much  to  do  in  influencing  large  concerns  to  lo- 
cate west  of  the  Cascade  Mountains. 

Statistics  show  that  today  one-fourth  of  the 
entire  generating  capacity  of  the  United  States 
is  used  by  one-seventeenth  of  the  country's  pop- 
ulation in  the  West,  and  that  this  same  popu- 
lation is  contributing  one-seventh  of  the  aggre- 
gate income  of  the  electric  lighting  industry.  On 
an  average,  every  person  in  the  West  uses  five 
hundred  and  twenty-seven  kilowatt  hours  an- 
nually, and  pays  $7.50  for  light  and  power,  as 
compared  with  the  ninety-nine  kilowatt  hours 
consumption,  and  the  $3.00  contribution  east  of 
the  Rockies. 

California  ranks  second  to  New  York  State  in 
the  amount  of  water  power  development,  there 
being  a  total  of  432,300  horsepower  in  water 
wheels  installed;  (it  also  ranks  third  in  total  ca- 
pacity of  dynamos,  having  817,000  horsepower 
installed).  Washington,  with  an  installation  of 
269,640  horsepower  in  water  wheels,  ranks  third, 
while  Oregon,  with  a  total  water  wheel  develop- 
ment of  105,300  horsepower,  also  ranks  high 
among  the  states  as  a  producer  of  electric  power. 


RIVERS  AND  HARBORS 


RIVERS  AND  HARBORS  OF  THE  PACIFIC 
COAST  OF  THE  UNITED  STATES. 

Brig.  Gen.  W.  H.  Bixby,  U.  S.  A.,  Retired. 
Formerly  Chief  of  Engineers. 

The  present  extent  and  the  possible  future  de- 
velopment of  the  rivers  and  harbors  of  the  Pa- 
cific Coast  of  the  United  States  can  not  be  fully 
appreciated  without  comparison  of  those  of  the 
Eastern  United  States  and  of  foreign  countries. 

The  useful  water  area  of  the  State  of  Wash- 
ington is  closely  that  of  the  States  of  Vir- 
ginia and  Maryland.  The  American  half  of 
the  Juan  de  Fuca  Strait  (whose  length  is 
about  80  miles,  average  width  about  14  miles, 
average  depth  several  hundred  feet,  with  few  out- 
lying dangers)  taken  in  connection  with  its  south- 
waul  prolongation,  Admiralty  Inlet  and  Puget 
Sound  (together  about  82  miles  long,  7  to  1  miles 
wide— average  about  2  miles— great  depths  as 
a  rule  up  to  within  half  a  mile  of  the  shore  or  to 
within  reach  of  modern  wharf  construction)  and 
the  adjoining  waters  of  Washington  Sound,  on 
the  northeast,  and  Hood  Canal,  on  the  south- 
west, constitute  a  single  waterway,  almost  equal 
in  area  to  Chesapeake  Bay,  and  far  surpass- 
ing it  in  deep  water  anchorage  and  deep  water 
frontage.  Such  being  the  case,  with  their 
large  area  of  fast-developing  back  country 
and  their  direct  connection  to  four  trans-conti- 
nental railway  lines,  Tacoma  and  Seattle,  and 
even  Everett  and  Bellingham,  have  possibilities 
greater  than  those  of  Baltimore  and  Norfolk 
of  today.  The  Columbia  River  valley  is  over 
a  thousand  miles  in  length;  and  its  basin,  or 
drainage  area,  involving  about  two-thirds  of  the 
States  of  Washington,  Oregon,  and  Idaho,  is 
larger  than  the  valley  of  the  Danube  west 
of  the  Iron  Gates,  or  than  the  Ohio  River  valley. 
The  Sacramento  and  San  Joaquin  valleys,  form- 
ing a  single  continuous  valley  tributary  to  San 
Francisco  Bay,  form  an  area  greater  than  the 
valley  of  the  Rhine  or  the  Rhone,  and  practically 
equal  to  that  of  the  Elbe  or  the  Vistula. 

In  past  years,  especially  prior  to  1900,  the  water 
borne  commerce,  and  the  river  and  harbor  de- 
velopments, of  the  Pacific  Coast  (except  at  San 
Francisco)  have  been  comparatively  slight,  due 
rather  to  sparseness  of  population  than  to  lack 
of  harbors  or  harbor  depths.     At  present,  the 


Pacific  Coast  is  increasing  rapidly  in  population, 
and  with  this  increase  has  come  the  natural  de- 
mand for  better  water  transportation  facilities, 
and  the  ability  to  provide  them. 

The  experience  of  the  Atlantic  Coast  and 
Europe  indicates  that  the  success  of  a  harbor  or 
water  terminal  depends  greatly  upon  its  acces- 
sibility to  and  from  all  its  transportation  lines, 
both  water  and  land,  at  inexpensive  rates  for 
transfers  between  them,  and  that  this  condition 
can  rarely  be  secured  except  through  public  con- 
trol of  some  sort.  It  is  already  known  (see  House 
Doc.  492,  60th  U.  S.  Congress,  1st  Session)  that 
once  loaded  into  21ft.  draft  boats  on  the  Great 
Lakes,  or  into  9-ft.  draft  boats  on  rivers  like  the 
Ohio,  heavy  bulk  cargoes  can  be  transported  by 
water  at  a  cost  of  less  than  $.005  per  ton 
mile,  a  rate  which  is  much  lower  than  rates  by 
rail;  but  this  saving  may  easily  be  wiped  out 
by  the  high  transfer  rates  of  poorly  arranged, 
or  monopolized,  terminals.  Within  the  past  few 
years,  the  legislatures  of  California,  Oregon,  and 
Washington  have  passed  acts  allowing  munic- 
ipalities and  other  public  bodies  to  own,  or  to 
control,  the  harbor  areas,  piers,  wharves,  docks 
and  adjacent  properties,  and  to  issue  bonds  to 
secure  the  funds  necessary  for  proper  develop- 
ment of  harbors.  Realizing  further  that  the 
chief  benefits  from  such  developments  are  usually 
local,  and  that  direct  federal  help  must  be 
limited  in  amount,  and  be  merely  supplemental  to 
local  expenditures,  the  larger  municipalities  (and 
some  smaller  ones)  of  the  Pacific  Coast  are  con- 
tributing liberally  to  harbor  development  work, 
and  the  counties  and  states  are  lending  aid  in 
the  same,  or  other  equally  material,  ways. 

San  Diego,  which  has  complete  ownership  of 
several  miles  of  harbor  front  and  several  hundred 
acres  of  tide  lands  adjacent  thereto,  is  already 
spending,  under  the  guidance  of  expert  harbor  en- 
gineers, $1,000,000  in  commencing  the  construc- 
tion of  modern  terminals  for  35  feet  draft  vessels. 
The  actual  depth  over  the  ocean  bar  is  already 
30  feet  at  low  water  and  35  feet  at  high  water, 
with  an  additional  5  feet  being  dredged  by  the 
federal  government.  The  municipal  wharves  are 
to  be  provided  with  modern  loading  and  unload- 
ing devices,  and  the  dockage,  wharfage  and  han- 
dling charges  at  all  wharves  receiving  mixed  or 
general  cargoes  are  regulated  by  the  Board  of 
Harbor  Commissioners. 


72 


RIVERS  AND  HARBORS 


Los  Angeles,  in  like  manner,  although  without 
complete  ownership,  is  spending  $10,000,000 
(over  half  of  which  has  already  been  voted)  upon 
accommodations  for  vessels  of  35  feet  draft.  Its 
existing  draft  is  30  feet  at  low  water  (an  in- 
crease to  35  has  been  recommended  by  federal 
officials)  up  to  16,000  linear  feet  of  wharf  front- 
age, over  2,600  of  which  belongs  to  the  city,  and 
a  less  draft  up  to  about  14,000  more  wharfage. 
The  municipal  ownership  is  about  one-sixth  of 
the  present  total  wharf  frontage,  and  the  charges 
at  all  wharves  are  controlled,  as  at  San  Diego. 
At  San  Francisco  harbor,  the  State  owns  about 
ten  miles  of  water  frontage,  of  which  it  has  im- 
proved about  4.75  miles  with  about  10  miles  of 
wharves — exclusive  of  bulkheads.  Moreover, 
along  the  entire  improved  water  front  of  the  city 
of  San  Francisco,  the  State  controls  a  public 
street  between  the  water  and  the  private  prop- 
erty with  riparian  rights.  By  popular  vote  of 
1904  and  1910  the  State  is  now  spending  $12,000,- 
000  upon  port  improvements,  all  of  which,  to- 
gether with  operation  of  existing  State  wharves 
and  of  the  State  Belt  Railroad,  are  under  the 
direction  and  control  of  the  State  Harbor  Com- 
mission of  San  Francisco;  all  being  based  upon 
the  existing  48  feet  depth  at  low  tide  on  the  best 
ocean  bar,  and  4  feet  tidal  range. 

Portland,  Ore.,  within  the  past  two  years  has 
voted  $2,500,000  for  municipal  wharves,  and 
Portland  and  Astoria  have  together  voted  $500,- 
000  for  channel  dredging  in  the  Columbia  River, 
this  being  in  addition  to  liberal  former  contribu- 
tions for  similar  dredging  by  the  Port  of  Port- 
land; all  being  based  upon  an  actual  26.5  feet 
depth  at  low  water  on  the  ocean  bar  and  in  the 
river.  The  federal  project,  two-thirds  completed, 
is  for  40  feet  on  the  ocean  bar,  at  a  total  cost  of 
about  $18,000,000. 

Seattle  and  King  county  in  1912-13  voted 
$6,300,000  for  port  improvements  to  accommo- 
date vessels  of  30  feet  draft  at  low  water,  a 
much  greater  draft  being  possible  at  compara- 
tively slight  expense  whenever  demanded  by 
Pacific  vessels. 

Tacoma,  Yaquima,  Tillamook,  Nehalem,  and 
other  lesser  municipalities  along  the  seacoast  are 
following  these  examples,  so  far  as  local  circum- 
stances will  allow. 

The  Pacific  Coast  is  already  reasonably  sup- 
plied with  dry  docks,  stone  and  floating,  and 
marine  railways,  for  vessel  repairs.  At  San 
Diego,  there  is  a  marine  railway  of  50  feet  length, 
50  feet  beam,  11.5  feet  draft,  and  1,000  tons  ca- 
pacity. At  Long  Beach,  adjoining  San  Pedro,  a 
floating  dock  of  284  feet  length,  76  feet  beam,  21 
feet  draft  over  keel  blocks,  and  3,000  tons  ca- 
pacity. At  San  Francisco,  besides  the  accommo- 
dations at  the  U.  S.  Naval  Station  at  Mare's 
Island,  there  are  4  marine  railways  of  4,000,  or 
less,  tons  capacity;  3  floating  docks  of  2,500,  or 
less,  tons  capacity;  and  2  stone  docks,  the  largest 
(Union  Iron  Works)  having  730  feet  bottom 
length,  74  feet  bottom  breadth,  and  30  feet  draft 
over  sills.  At  Portland,  Ore.,  5  marine  railways 
and  2  floating  docks,  the  largest  (municipal)  hav- 


ing 468  feet  length,  82  feet  inside  breadth,  25  feet 
draft  over  keel  blocks  and  10,000  tons  capacity. 
At  Aberdeen,  Grays  Harbor,  a  marine  railway  of 
1,500  tons  capacity.  At  Seattle,  3  marine  railways 
of  3,000,  or  less,  tons  capacity,  and  4  floating 
docks,  the  largest  (Seattle  Construction  &  Dry 
Dock  Co.)  having  468  feet  length,  110  feet  inside 
width,  31  feet  depth  over  keel  blocks,  and  12.000 
tons  capacity.  At  Bremerton,  the  Puget  Sound 
U.  S.  Naval  Establishment,  there  are  2  stone 
docks,  available  to  the  public  when  not  in  use  by 
the  federal  government,  of  which  the  largest  has 
573  feet  length  on  blocks,  93  feet  entrance  width, 
and  28.5  draft  over  its  blocks.  At  Winslow,  Eagle 
Harbor,  there  is  a  marine  railway  (Hall  Bros.)  of 
325  feet  length,  85  feet  width,  17-21  feet  draft 
over  blocks,  and  4,000  tons  capacity.  At  Everett, 
another  marine  railway  of  1,500  tons.  And  at 
Esquimalt,  Victoria,  and  Vancouver,  British  Co- 
lumbia, there  are  6  marine  railways  of  3,000,  or 
less,  tonnage  capacity,  and  1  government  stone 
dock  of  450  feet  length,  65  feet  width  of  gate,  45 
feet  bottom  width  and  27-29  feet  draft  over  sills. 
In  connection  with  the  above  docks  and  railways, 
shipbuilding  operations  are  carried  on  at  San 
Francisco,  at  Portland,  and  at  Grays  Harbor, 
Eagle  Harbor,  and  Seattle.  Oil  docks  for  general 
supply  purposes  exist  at  San  Diego,  San  Pedro, 
Redondo  Beach,  Monterey,  San  Francisco,  Oleum, 
Stockton  and  Sacramento,  at  Astoria  and  Port- 
land, and  at  Seattle.  Coal  docks  for  supply  in 
large  quantities  exist  at  San  Francisco,  Portland, 
Tacoma,  and  Seattle. 

As  regards  existing  commerce,  the  ports  of  the 
Pacific  Coast  are  already  doing  well  considering 
their  youth  and  surroundings.  In  1913  (as  stated 
in  the  An.  Report  Chief  of  Engineers  U.  S.  Army, 
1914)  the  total  water  commerce,  exports  and  im- 
ports, foreign  and  coastwise,  reached  the  follow- 
ing values  at  the  larger  ports:  At  Tacoma,  $36,- 
000,000, — greater  than  that  of  Toledo,  Ohio;  at 
Seattle  about  $115,000,000, — about  the  same  as 
that  of  Portland,  Me.,  or  Providence,  R.  I.,  and 
more  than  half  that  of  Baltimore  or  Buffalo;  (the 
foreign  commerce  of  Puget  Sound  alone  equaling 
about  $114,000,000,  or  about  one-half  that  of 
Boston) ;  at  Astoria  and  Portland,  Ore.  (mouth  of 
Columbia  River),  $102,000,000,— greater  than 
either  Cleveland,  O.;  Mobile,  Ala.,  or  Charleston, 
S.  C;  at  San  Francisco,  $540,000,000  (of  which 
$183,000,000  was  foreign),  surpassed  in  the 
United  States,  in  both  total  and  foreign  com- 
merce, only  by  New  York  City,  Boston,  Norfolk 
and  Galveston,  and  in  total  commerce  alone  by 
Philadelphia;  at  Los  Angeles,  $94,000,000,  greater 
than  Cleveland,  Mobile,  or  Charleston,  S.  C. ;  and 
at  San  Diego,  $55,000,000,  practically  equal  to 
Tampa,  Fla.,  and  only  a  little  less  than  Mobile, 
Ala.,  and  Jacksonville,  Fla. 

In  this  connection,  it  is  well  to  bear  in  mind  the 
rapidity  with  which  all  Pacific  Coast  water-borne 
commerce  is  increasing;  for  example,  San  Fran- 
cisco foreign  commerce  alone  increased  33  per 
cent  in  the  eight  years  from  1905  to  1913  (of 
which  20  per  cent  was  in  1912-1913),  and  Puget 
Sound  foreign  commerce  alone  increased  in  like 
manner  50  per  cent  in  the  same  eight  years  (of 


RIVERS  AND  HARBORS 


73 


which  12  per  cent  was  in  the  single  year  1912- 
1913). 

In  available  depths,  Seattle,  Tacoma,  and  Puget 
Sound  water  fronts  in  general  are  equal  to  those 
of  any  parts  of  the  Atlantic  coast  of  America,  and 
better  than  those  of  Antwerp,  Belgium ;  Naples  or 
Brindisi,  Italy;  Dieppe  or  Havre,  France;  Brem- 
erhaven  or  Hamburg,  Germany.  Grays  Harbor 
(21  feet  on  its  bar  at  low  water)  and  Willapa 
Harbor  (27  feet  on  bar)  north  of  the  Columbia 
River,  and  Tillamook  Bay  (10  feet  on  bar), 
Yaquina  (12  feet  on  bar),  Sinslaw  (7  feet  on  bar), 
Umpqua  (13  feet  on  bar),  Coos  Bay  (14  feet  on 
bar),  Humboldt  Harbor  (18  feet  on  bar),  be- 
tween the  Columbia  and  San  Francisco,  while 
not  yet  fully  developed,  have  natural  endowments 
sufficient  in  time  to  enable  them  to  rival  Charles- 
ton, S.  C,  or  Portland,  Me.,  (the  shifting  and  dan- 
gerous bars  are  being  improved  under  projects 
and  appropriations  made  by  the  federal  govern- 
ment). From  the  Ocean  to  Portland,  Ore.,  the 
Columbia  River  is,  in  depth,  equal  or  superior  to 
the  harbors  of  Portland  (Me.),  Norfolk,  Charles- 
ton (S.  C),  Jacksonville  or  Pensacola.  Astoria 
and  Portland,  which  bear  to  the  rich  and  exten- 
sive Columbia  River  basin  the  same  geographical 


The  Columbia,  Sacramento,  and  San  Joaquin 
rivers  have  large  drainage  basins  and  permit  of 
extensive  navigation.  The  Columbia  is  valu- 
able for  water  power  and  irrigation  as  well 
in  its  middle  portions  as  in  its  upper  por- 
tion. The  Sacramento  and  San  Joaquin  are 
specially  valuable  for  irrigation  purposes  in 
their  middle  portion.  The  Columbia  river,  and  its 
tributaries,  by  the  end  of  1915  when  the  9-mile, 
8-feet  depth  canal  is  completed  at  Cellilo,  will 
be  navigable  from  its  mouth  upward  for  114  miles 
(to  Portland)  with  26  feet  draft,  200  miles  with  8 
feet  draft,  400  miles  with  4  feet  draft,  and  over 
GOO  miles  with  2  feet  draft,  into  the  interior  of 
Oregon,  Washington,  and  Idaho.  The  Sacramento 
is  already  navigable  over  100  miles  with  7  feet  (to 
Sacramento),  and  over  300  miles  with  2  feet 
(to  Red  Bluff).  The  San  Joaquin  is  already  nav- 
igable 45  miles  with  7  feet  (to  Stockton) ;  and  the 
San  Joaquin  and  Mokelumne  88  miles  with  8 
feet  (to  Gait-New  Hope).  So  far  as  these  rivers 
are  navigable  they  are  valuable  adjuncts  to  the 
harbors  into  which  they  enter,  and  the  communi- 
ties served  thereby  are  naturally  much  interested 
in  the  general  river  and  harbor  developments  to 
which  they  are  thus  affiliated.    Aside  from  these 


BREAKWATER  AT  SAN  PEDRO— PORT  OF  LOS  ANGELES. 


relations  that  Rotterdam  and  Cologne  bear  to  the 
Rhine  basin,  have  depths  and  areas  of  good  water- 
ways, accessible  back  country,  and  trans-conti- 
nental railway  connections  sufficient  to  bring 
them  a  population  and  commerce  equal  to  that  of 
the  European  cities.  San  Francisco  Harbor  (all 
of  San  Francisco  Bay)  with  its  36  square  miles 
of  anchorage  area  with  depths  of  40  to  90  feet, 
and  200  or  more  square  miles  of  lesser  depths,  is 
already  in  depths  equal  to  New  York  Harbor  or 
any  other  Atlantic  or  Gulf  port  of  the  United 
States;  and  in  future  possibilities  it  is  the 
equal  of  any  of  them.  Los  Angeles  has  an 
available  bar  and  harbor  depth  equalled  by 
no  United  States  port  except  New  York.  San 
Diego  Harbor,  with  its  completely  land-locked, 
half-tide  water  area  of  21  square  miles,  and 
its  existing  inside  draft  of  21  feet  at  low 
water  over  9  miles  in  length,  will,  when  dredg- 
ing now  in  progress  is  completed,  have  a  bar  and 
harbor  depth  exceeded  on  the  Atlantic  coast  only 
by  New  York,  and  its  commerce  should  now  in- 
crease with  great  rapidity. 


three,  Pacific  Coast  rivers  are  comparatively 
small,  and  their  navigable  lengths  are  mainly  re- 
stricted to  the  portions  affected  by  the  tides  of 
the  harbors  which  they  enter.  All  of  them  how- 
ever have  valuable  water  powers  at  or  near  their 
head-waters. 

The  opening  of  the  Panama  Canal  will  neces- 
sarily add  considerable  impetus  to  further  de- 
velopment of  the  Pacific  Coast  Harbors.  With 
the  increased  business  will  come  the  need  for 
more  wharves  and  improved  terminal  facilities, 
such  as  are  already  being  started  at  San  Diego, 
Los  Angeles,  San  Francisco,  Portland,  and  in 
Puget  Sound,  under  municipal  ownership  or 
supervision. 

Full  details  of  past  development  of  individual 
harbors,  and  present  rules  and  directions  for  use 
of  pilots  and  other  navigators  of  the  Coast  or  its 
harbors,  are  published  by  the  War  Department 
(Annual  Reports,  Chief  of  Engineers,  U.  S. 
Army)  and  of  the  Department  of  Commerce 
and  Labor — now  the  Department  of  Commerce 
— (U.  S.  Coast  Pilot— Pacific  Coast,  1909,  with 
annual  supplements). 


74 


SECURITIES 


SIPHON'  ON  LOS  ANGELES  AQUEDUCT. 

PACIFIC   COAST   SECURITIES. 
By  G.  K.  Weeks. 

The  following  article,  prepared  before  the 
cataclysm  in  Europe  temporarily  deranged  all 
security  markets,  undertakes  to  deal  with  nor- 
mal conditions  as  they  have  existed.  A  dis- 
cussion of  the  qualities  of  investment  bonds 
which  are  common  to  these  securities  in  all  mar- 
kets is  not  considered  within  its  scope.  Rather 
will  it  be  the  purpose  to  outline  as  clearly  as  may 
be  those  conditions  governing  the  issuance  of 
securities  or  features  of  the  market  therefor 
which  have  been  characteristic  of  the  Pacific 
Coast. 

The  leading  characteristics  of  the  Pacific  Coast 
States  which  have  influenced  the  issuance  and 
sale  of  securities  are  probably  the  rapid  growth 
of  this  territory  in  population  and  production; 
the  need  of  outside  capital;  the  exceptional  cli- 
mate, which  attracts  people  accustomed  to  the 
luxuries  of  life;  and  the  original  and  independent 
habits  of  thought  which  are  typical  of  the  sons 
of  pioneers  who  form  the  backbone  of  the  popu- 
lation of  this  section. 

The  last  federal  census  showed  a  percentage 
of  increase  in  population  during  the  1900-1910 
decade  as  compared  with  the  beginning  of  that 
decade  amounting  in  California  to  60.09%,  in 
Oregon,  to  62.68%,  and  in  the  State  of  Washing- 
ton to  120.41%,  as  compared  with  only  21.02% 
for  the  United  States  as  a  whole.  While  the  most 
rapid  growth  was  in  the  cities,  the  rural  dis- 
tricts also  showed  marked  increases  in  population 
and  wealth.  Of  the  eleven  counties  in  California 
where  the  population  increased  over  75'/,  be- 
tween 1900  and  1910,  only  two  contained  cities 
having  a  population  of  50,000  or  more.  These 
increases  are  all  the  more  striking  as  compared 
with  the  small  growth  or  declines  in  the  popula- 
tion of  rural  districts  in  the  East  and  Middle  West. 
Such  rapid  growth  points  to  a  necessity  on  the 
part  of  states,  municipalities  and  public  utility 
corporations  alike  of  raising  large  amounts  of 
capital  for  providing  the  facilities  necessary  for 
the  adequate  public  service  of  these  communities. 


BUILT  BY  THE  CITY.     DEADMAN'S  CANYON. 

There  are  at  present  evidences  of  some  dis- 
crimination against  Pacific  Coast  Municipal 
Bonds,  on  the  ground  that  these  municipalities 
are  putting  out  "too  many  bonds."  That  there 
is  some  justice  in  this  criticism  the  writer  would 
be  the  last  one  to  deny.  However,  from  1890  to 
1910,  Seattle  grew  in  population  from  42,837  to 
237,194;  Oakland  from  48,682  to  150,174;  Los 
Angeles  from  50,395  to  319,198,  and  the  confident 
utterances  of  the  various  Chambers  of  Commerce 
are  to  the  effect  that  the  ratio  of  growth  reflected 
in  the  above  federal  census  figures  has  been  more 
than  maintained  during  the  last  four  years.  In 
contrast,  we  find  that  among  Eastern  cities  of 
similar  rank,  between  1890  and  1910  Cincinnati 
increased  in  population  only  from  296,908  to  363,- 
591;  Buffalo  from  255,664  to  423,715;  Washington 
from  230,392  to  331,069,  and  New  Orleans  from 
242,039  to  339,075.  This  rapid  Western  growth 
requires  continuous  expenditures  for  new  schools, 
new  public  buildings,  new  sewers,  new  fire  pro- 
tection systems,  and,  alas,  new  jails.  Also,  if  the 
municipality  operates  its  own  water  system,  new 
capital  is  constantly  required  for  its  enlarge- 
ment, particularly  in  "Sunny  California,"  with 
her  dry  seasons,  where  domestic  water  in  many 
cases  is  brought  at  heavy  expense  from  the  dis- 
tant mountains. 

Likewise,  in  undertaking  the  financing  of 
healthy  public  utilities  on  the  Pacific  Coast,  it 
must  be  realized  that  success  can  only  be  attained 
by  the  expenditure  of  large  sums  of  money  year 
after  year  to  provide  necessary  increases  in  plant 
and  equipment,  and  that  if  these  sums  are  not 
supplied,  companies  cannot  give  satisfactory 
service  to  consumers  in  their  territory  and  can- 
not prosper.  An  illustration  of  financing  illy 
suited  to  conditions  in  this  territory  is  furnished 
by  a  traction  system  in  California  on  which  there 
were  placed  in  the  short  space  of  eight  and  one- 
half  years  five  successive  bond  issues,  being  in 
turn,  first,  second,  third,  fourth,  and  fifth  mort~ 
gages  on  the  bulk  of  the  system,  all  because  the 
authorized  amount  of  these  various  issues  was  in- 
sufficient to  provide  for  the  growth  of  the  sys- 


SECURITIES 


75 


tem  for  even  a  moderate  period  of  time.  The 
history  of  the  Pacific  Gas  &  Electric  Company, 
the  largest  and  best  known  utility  on  the  Pacific 
Coast,  illustrates  the  growth  for  which  a  utility 
in  this  territory  must  be  prepared  to  provide.  This 
company  practically  doubled  the  number  of  it3 
consumers  in  the  six  and  one-half  years  ending 
June  30,  1914,  the  increase  being  from  183,271 
to  359,228,  without  extending  into  any  new  terri- 
tory of  importance.  Our  first  proposition  thus  is, 
that  the  legitimate  financing  of  the  Pacific  Coast 
States  involves  the  continued  issuance  and  sale 
of  large  amounts  of  new  securities  so  long  as  the 
present  ratio  of  growth  continues. 

The  demand  for  outside  capital  follows  natural- 
ly, although  not  necessarily,  the  rapid  growth 
already  outlined.  In  this  matter  conditions 
in  the  three  Coast  States  have  been  by  no 
means  identical.  In  California,  during  a  long 
period  terminating  about  1906,  local  capital 
seemed  sufficient  for  all  requirements.  Ex- 
cept for  the  money  brought  into  the  State  by  the 
transcontinental  railroads,  financed  in  the  East, 
and  by  Eastern  settlers,  neither  the  municipal- 
ities nor  the  corporations  went  outside  their  own 
state  for  funds.  Since  the  bonanza  days  of  '49, 
the  output  of  the  State's  mines  had  been  enor- 
mous, the  fertile  valleys  had  rendered  ready  trib- 
ute to  the  agriculturist,  and  the  shipping  of  the 
State's  chief  port,  San  Francisco,  had  added  not 
a  little  to  the  general  wealth.  At  the  beginning 
of  the  year  1906  the  total  of  California  State  and 
Municipal  Bonds  held  in  the  East  was  less  than 
$5,000,000,  an  amount  now  frequently  exceeded 
by  the  shipments  during  a  three  months'  period. 
The  public  utilities  of  the  State  were  practically 
all  financed  at  home.  The  San  Francisco  earth- 
quake and  fire  of  1906  resulted  in  a  tremendous 
demand  for  capital  for  the  rebuilding  of  homes, 
stores,  office  buildings  and  factories.  About  the 
same  time  the  subdivision  of  the  great  interior 
ranches,  and  their  irrigation  or  reclamation  to 
make  them  suitable  for  intensive  farming,  re- 
ceived a  great  impetus;  interurban  railroad  build- 
ing began  in  earnest;  the  hydro-electric  industry, 
which  had  sprung  into  being  half-a-dozen  years 
before,  underwent  rapid  development;  and  the 
State  came  to  be  one  of  the  greatest  petroleum- 
producing  sections  in  the  world.  From  being 
self-sufficient  in  her  financial  affairs,  California 
has  now  come  to  be  a  very  large  borrower  of 
Eastern  and  foreign  capital.  In  Oregon  develop- 
ment has  been  less  rapid.  Portland  is  the  most 
conservative  city  on  the  Pacific  Coast.  The  East 
is  constantly  buying  securities  in  moderate  vol- 
ume for  the  financing  of  Oregon  municipalities, 
utilities  and  timber  enterprises,  but  the  develop- 
ment of  the  State  has  not  gone  forward  with  the 
feverish  haste  that  has  characterized  California 
during  recent  years.  Washington  has  been  de- 
veloped almost  entirely  by  Eastern  money,  a 
goodly  portion  of  it  coming  from  New  England, 
and  while  the  forests  and  grainfields  of  the 
State  are  bringing  in  increasingly  large  returns 
and  the  Alaskan  trade  is  proving  a  source  of  great 
revenue,  municipalities  and  corporations  alike 


still  turn  to  the  Atlantic  Seaboard  for  practically 
their  entire  supply  of  new  capital. 

The  effect  of  the  climate  and  the  wealth  it  at- 
tracts is  to  be  noted  in  the  $18,000,000  issue  of 
California  State  Highway  Bonds  now  in  process 
of  being  marketed,  supplemented  by  county  bond 
issues  throughout  California  aggregating  an  ad- 
ditional $12,500,000  for  permanent  road-building, 
which  have  been  sold  during  the  last  six  years. 
California  owns  more  automobiles  per  capital 
than  any  other  state  in  the  country,  which  prob- 
ably accounts  in  some  degree  for  the  passion  for 
good  roads.  Santa  Barbara  and  San  Diego  are 
reputed  to  enjoy  an  exceptionally  equable  cli- 
mate, and  have  attracted  a  large  number  of 
wealthy  Eastern  residents.  Santa  Barbara,  in 
order  to  assure  herself  a  permanent  supply  of 
pure  water  has  tunneled  a  mountain,  tapping  a 
natural  reservoir.  San  Diego,  a  comparatively 
small  city,  has  sold  during  the  last  five  years  ap- 
proximately $6,100,000  bonds  for  the  acquisition 
and  development  of  a  domestic  water  system,  and 
$4,000,000  additional  for  parks,  schools  and  other 
municipal  improvements. 

The  effect  of  the  pioneer  spirit  already  referred 
to  is  to  be  found  in  part  in  the  confident  crowd- 
ing into  a  few  short  years  of  the  development 
and  improvements  which  have  occupied  prac- 
tically as  many  decades  in  most  Eastern  commun- 
ities,— in  part  in  the  slashing  way  in  which  Pa- 
cific Coast  communities  frequently  go  about  rem- 
edying abuses.  If  because  of  improper  financ- 
ing or  for  other  reasons  a  street  railway  system 
fails  to  give  proper  service,  or  to  provide  the  ex- 
tensions required  by  the  growth  of  a  community, 
the  vigorous  Western  mind  jumps  at  the  solution 
of  municipal  ownership,  sometimes,  it  seems, 
with  very  little  consideration,  minding  not  at  all 
that  the  careful  economist  who  has  worked 
out  these  movements  to  their  final  conclu- 
sion may  advise  that  the  latter  state  will  be 
worse  than  the  first.  While  it  is  unwise  to  dog- 
matize on  matters  of  this  kind,  it  is  the  writer's 
judgment  that  the  population  on  the  Pacific  Coast 
contains  no  greater  socialistic  element— prob- 
ably less — than  the  population  of  the  Eastern 
states,  and  that  the  considerable  vogue  of  munic- 
ipal ownership  is  due  not  to  any  theoretical  con- 
version to  the  wisdom  of  state  ownership  and 
operation  of  utilities,  but  rather  to  an  ungovern- 
able determination  that  the  facilities  which  are 
believed  by  the  local  population  to  be  befitting 
their  ambitious  cities,  shall  be  immediately 
achieved — if  private  capital  does  not  respond  with 
alacrity,  then  by  the  municipality  itself. 

A  detailed  discussion  of  the  exact  market  for 
the  various  classes  of  Pacific  Coast  bonds  would 
be  too  technical  for  the  purposes  of  this  article. 
The  state  bonds  and  bonds  of  the  cities  of 
Spokane,  Seattle,  Portland,  San  Francisco,  Oak- 
land, and  Los  Angeles,  which  alone  of  the 
Pacific  Coast  public  issues  are  legal  investments 
for  savings  banks  in  New  York  and  Massachus- 
etts, naturally  find  their  market  largely  in  the 
East.  In  the  case  of  none  of  the  municipalities 
in  question  are  more  than  50%  of  outstanding 
bonds  held  on  the  Pacific  Coast,  and  in  the  case 


76 


MINING 


of  some  of  them  practically  the  entire  outstand- 
ing indebtedness  is  held  outside  the  home  mar- 
ket. The  situation  as  regards  county  bonds  is 
somewhat  mixed.  Many  of  these  issues  find  their 
way  to  the  Eastern  market,  but  in  California, 
where  county  bonds  are  favored  for  trust  fund 
investment,  even  above  the  bonds  of  the  largest 
municipalities,  the  local  market  absorbs  a  very 
fair  proportion  of  county  issues.  Of  all  Cali- 
fornia county  bonds  outstanding,  a  majority  are 
today  held  within  the  State.  In  all  of  the  three 
Pacific  Coast  states,  local  municipal  bonds  are 
accepted  as  security  for  public  deposits;  in  Cali- 
fornia they  are  the  only  legal  security.  The  de- 
mand for  public  bonds  for  this  purpose  reinforces 
the  demand  for  savings  bank  or  trust  fund  invest- 
ment to  a  marked  degree,  in  addition  to  which  the 
state  school  funds  in  California  and  Washington 
absorb  a  very  considerable  amount  of  local  bonds, 
so  that  outside  of  the  very  high-grade  municipals 
which  are  legal  for  savings  banks  or  sought  after 
for  insurance  company  investment  in  the  East, 
the  local  market  absorbs  the  bulk  of  new  munic- 
ipal issues. 

In  the  public  utility  field  the  movement  toward 
consolidation,  so  well  known  in  all  sections  of  the 
country,  has  gone  forward  in  a  rather  rapid  way. 
In  the  State  of  Washington  practically  all  pub- 
lic utilities  of  importance  fall  within  five  or  six 
groups,  all  controlled  from  the  East.  The  situa- 
tion in  Oregon  is  similar.  In  California  many 
of  the  important  interurban  railways  are  under 
the  control  of  the  Southern  Pacific  Company.  In 
the  hydro-electric  field  eight  companies  prac- 
tically dominate  this  industry  throughout  the 
State.  These  companies  are  mostly  controlled 
in  California,  but  represent  the  investment  of  a 
large  amount  of  Eastern  capital.  In  the  case  of 
bonds  issued,  the  proportion  placed  in  the  East 
is  usually  in  direct  ratio  to  the  size  and  import- 
ance of  the  issue,  the  more  important  bond  issues 
which  come  on  the  market  in  large  blocks  being 
taken  principally  by  Eastern  and  foreign  cap- 
ital, while  the  smaller  companies  putting  out 
bonds  in  limited  amounts  from  time  to  time  are 
able  to  obtain  their  capital  to  a  large  extent  in  the 
local  market. 

The  railroad  commissions  of  the  Pacific  Coast 
states,  and  particularly  the  California  Commis- 
sion, bid  fair  to  become  large  factors  in  the  mar- 
ket for  public  utility  securities  which  come  under 
their  jurisdiction.  The  California  Commission 
has  adopted  the  broad  principal  that  no  securi- 
ties, either  stock  or  bonds,  may  be  issued  except 
against  an  investment  in  property  in  an  amount 
fairly  comparable  to  the  part  value  of  the  se- 
curities issued.  While  a  strict  adherence  to  this 
rule  may  work  some  initial  hardship  in  the  mat- 
ter of  stock  issues,  it  is  believed  by  the  writer 
that  its  conscientious  application  to  the  securi- 
ties of  companies  operating  in  a  territory  which 
possesses  such  great  natural  resources  and  such 
brilliant  prospects  of  future  growth  as  the  Pacific 
Coast  states,  will  insure  a  class  of  public  utility 
bonds  as  safe  and  ultimately  as  popular  as  those 
originating  in  any  other  section  of  the  United 
States. 


MINING  ON  THE  PACIFIC  COAST. 
By  H.  Foster  Bain,  Editor  Mining  &  Scientific 
Press,  San  Francisco. 
Time  is  bringing  changes  in  mining  along  the 
Pacific  Coast.  Only  in  Alaska  and  Oregon  do  the 
gold  mines  now  make  the  largest  contribution 
to  the  annual  output.  In  California,  petroleum, 
the  wonderful  liquid  fuel  that  is  transforming  the 
industrial  situation  on  the  West  coast,  now  out- 
ranks it;  while  in  Washington  coal  takes  first 
place  and  even  in  British  Columbia,  that  province 
of  marvelously  varied  mineral  wealth,  coal  out- 
ranks not  only  gold  but  copper,  which  there  takes 
second  place. 

Using  for  convenience  the  more  complete  fig- 
ures for  1912,  and  following  the  statistics  com- 
piled by  the  United  States  Geological  Survey,  it 
appears  that  the  mineral  output  of  the  three 
Pacific  Coast  states  is  now  as  follows: 

California   $92,837,374 

Washington    15,347,313 

Oregon    2,553,549 


$110,738,236 
To  this  may  be  added  the  production  of  Alaska 
and  British  Columbia,  $22,724,833  and  $32,440,800 
respectively,  making  a  total  of  $165,903,869.  The 
present  production  is  at  an  even  larger  rate.  The 
total  is  impressive  even  in  these  days  of  large 
sums.  What  is  even  more  significant,  however, 
is  the  large  portion  of  the  total  which  represents 
fuels  and  structural  materials;  the  former  ac- 
counts for  $58,322,376,  and  the  latter  for  $26,276,- 
879.  Of  these  the  expenditure  on  structural  ma- 
terials— including  clay  products,  stone,  cement, 
and  lime — represents  money  spent  at  home  large- 
ly in  building  up  permanent  structures.  In  a 
sense,  it  stands  for  savings  of  the  present  for 
the  future.  The  fuel,  too,  is  largely  consumed 
at  home.  While  California  is  exporting  large 
quantities  of  petroleum,  the  bulk  of  the  oil  is 
burned  on  the  West  coast  and  each  barrel  of  oil 
or  ton  of  coal  represents  work  done  by  unseen 
hands;  labor  that  does  not  eat  and  does  not  con- 
sume. The  waterfalls,  oilwells,  and  coal  mines 
make  up  in  part  for  the  small  population  in  the 
large  area. 

Ninety  per  cent  of  the  mineral  output  of  the 
Pacific  Coast  is  represented  by  four  items : 

Fuel   $58,322,376 

Gold 43,416,335 

Structural  materials 26,276,879 

Copper    19,373,233 

The  remainder  of  the  production  is  in  widely 
varied  form.  California  is  the  most  important 
North  American  producer  of  quicksilver,  and 
Alaska  has  the  only  important  tin  mine.  Silver 
and  lead  are  not  mined  in  important  quantities 
on  the  Pacific  Coast,  though  in  eastern  British 
Columbia  there  is  a  thriving  industry  and  in  the 
Coeur  D'Alenes,  barely  outside  the  state  of  Wash- 
ington, is  one  of  the  world's  great  lead-silver  dis- 
tricts. Almost  all  the  metals  and  non-metallic 
minerals  of  economic  importance  occur  in  the 
region  and  many  of  them  are  produced.  It  is 
not  likely,  however,  that  within  any  period  of 


MINING 


77 


present  importance  the  dominance  of  fuels,  gold, 
copper,  and  building  materials  will  be  challenged. 

While  the  days  of  gold  easily  won  from  shal- 
low placers  have  gone,  gold  mining  is  still  a 
great  industry  and  it  is  now  based  upon  deposits 
that  assure  it  a  long  life.  The  dredging  fields, 
it  is  true  will  be  exhausted  in  a  few  years  by  the 
great  16-cubic  foot  buckets  used  on  modern 
boats,  but  the  quartz  mines  grow  in  importance 
rather  than  the  reverse.  The  reason  is  that  each 
new  device,  each  increase  in  scale  of  operations, 
so  lowers  the  cost  of  production  as  automatically 
to  convert  into  ore  much  that  was  previously  too 
lean  to  rank  as  more  than  waste.  When  min- 
ing began  at  Juneau,  small  veins  of  quartz  con- 
taining gold  to  the  value  of  $20  per  ton  or  more 
were  worked,  just  as  even  richer  veins  have  been, 
within  a  few  years,  opened  near  Sitka.  Such  veins 
are  quickly  exhausted,  but  the  Alaska-Juneau 
is  now  preparing  to  mine  ore  worth  but  $1.35  per 
ton  net,  and  is  counting  on  treating  12,000  tons 
per  day.  On  this  basis  the  supply  is  considered 
adequate  for  300  years.  Two  neighboring  mines 
are  likewise  arranging  for  wholesale  production. 
While  the  opportunities  are  exceptional  at  Juneau, 
and  for  some  time  to  come  it  will  be  impossible 
to  hope  for  equally  low  costs  elsewhere,  move- 
ment in  the  same  direction  is  taking  place  in  all 
the  mining  districts  on  the  coast.  There  can  be 
no  such  thing  as  total  exhaustion  of  the  mines, 
even  though  a  mine  is  a  true  wasting  asset.  As 
the  demand  for  metal  grows,  any  resulting  scarc- 
ity is  reflected  in  price,  which  in  turn,  with  bet- 
ter or  larger  scale  operations  reducing  costs, 
brings  into  the  field  deposits  previously  un- 
workable. 

The  great  new  thing  in  the  Pacific  Coast  min- 
eral industry  in  the  last  decade  has  been  the 
opening  of  the  California  oil  fields.  It  is  diffi- 
cult to  overestimate  the  importance  of  this  de- 
velopment in  an  area  relatively  barren  of  fuel. 
Nowadays  not  only  does  California  supply  more 
crude  petroleum  than  any  field  in  the  world,  but 
its  reserve  is  the  largest  known;  more  than  half 
the  total  for  the  United  States.     It  is  believed 


that  the  California  oil  fields  have  now  been  out- 
lined and  that  there  is  comparatively  little  hope 
of  finding  any  great  productive  area  outside  their 
limits.  While,  too,  it  is  hazardous  to  guess,  it  is 
not  thought  probable  that  any  comparable  fields 
will  be  discovered  upon  the  Pacific  Coast  of 
North  America.  The  reserve,  therefore,  while 
large  when  measured  in  barrels  is  small  as  meas- 
ured against  future  demands  if  oil  is  to  continue 
to  be  burned  for  fuel  in  all  the  industries  and 
territory  now  dominated  by  it.  For  the  present 
coal  is  at  a  discount  on  the  Pacific,  but,  meas- 
ured by  long  years,  the  petroleum  supply  is  en- 
tirely inadequate.  Even  now,  and  with  the  Mex- 
ican and  other  Gulf  coast  fields  to  reinforce  the 
supply,  the  Atlantic  steamship  companies  dare 
not  convert  their  ships  to  oil  burners.  It  is  in- 
evitable that  in  a  comparatively  few  years  the 
demand  for  petroleum  will  outrun  the  cheap  sup- 
ply and  its  use  will  be  restricted.  For  the  pres- 
ent it  is  abundant  and  so  cheap  that  the  pro- 
ducer makes  little  or  not  profit.  The  benefit 
goes  to  the  transporting  and  marketing  agencies 
in  part,  but  most  of  all  to  the  people  of  Cali- 
fornia and  neighboring  states  who,  by  reason  of 
the  possession  of  this  marvelously  efficient  and 
convenient  fuel,  have  seen  industries  established 
and  brought  to  a  profitable  basis  in  a  few  years 
that  would  otherwise  have  had  to  wait  for 
decades. 

Time  will  continue  to  work  changes  in  the 
mining  industry  of  the  coast.  Petroleum  will 
become  a  precious  fuel  to  be  used  only  for  spe- 
cial purposes.  Coal  mining  in  the  Northwest 
and  Alaska  will  grow;  improvements  in  smelt- 
ing practice  will  permit  the  copper  industry,  now 
held  down  by  court  restrictions  on  fume  emis- 
sion, to  take  its  proper  place;  iron  and  the  minor 
metals  will  play  their  part;  the  output  of  struc- 
tural materials  will  increase  with  the  population; 
and  always  the  West  will  furnish,  not  only  the 
minerals  called  for  by  industry,  but  an  appreci- 
able amount  of  gold  as  a  basis  for  the  currency 
with  which  the  business  of  industry  may  be 
transacted. 


A  GOLD  DREDGER. 


AGRICULTURE 


HARVEST  TIME   IN 

THE  AGRICULTURE  OF  THE  PACIFIC  COAST. 

By  Thomas  H.  Means,  of  Symmes,  Means  & 
Chandler. 

Less  than  one  hundred  years  ago  the  agricul- 
tural products  of  the  Pacific  Coast  country  con- 
sisted of  a  few  cattle  raised  under  the  direction 
of  the  mission  fathers,  and  of  the  yields  from 
small  orchards,  gardens,  and  grain  fields  sur- 
rounding the  mission  settlements.  The  country 
back  from  the  Coast  and  away  from  the  missions 
was  a  wilderness  inhabited  by  Indians.  Within  this 
hundred  years  a  population  of  seven  millions  has 
come  into  the  district  west  of  the  Rocky  Moun- 
tains; five  millions  occupying  the  immediate  coast 
states.  The  mines  first  attracted  settlement,  but 
agricultural  development  has  gone  on  so  rapidly 
that  today  mining  is  but  a  small  part  of  the  inter- 
ests of  the  people.  Agriculture  has  become  the 
great  industry,  and,  though  the  area  of  land  de- 
veloped is  small  as  compared  with  the  total  area, 
there  are  large  areas  of  the  highest  type  of  agri- 
cultural development.  One  hundred  years  has 
seen  a  change  from  wilderness  to  the  most  sci- 
entific and  highly  specialized  farming  in  the 
world. 

This  settlement  and  development  of  so  vast  a 
territory  is  one  of  the  most  remarkable  events  in 
the  history  of  the  world.  While  the  time  given 
above  is  one  hundred  years,  the  real  substantial 
progress  has  occurred  within  sixty  years.  With- 
in that  time  the  five  millions  of  people  who  occupy 
the  Pacific  Coast  states  have  established  200,000 
farms  containing  51  million  acres,  of  which  22 
million  acres  are  improved.  The  value  of  crops 
raised  in  1909  was  $345,000,000,  and  the  value  of 
live  "stock  on  farms  $360,000,000. 

A  development  carried  on  at  such  a  rapid  rate 
must  meet  and  solve  many  important  problems, 
and  it  is  natural  to  suppose  that  many  problems 
of  importance  are  yet  awaiting  solution.  Taking 
everything  into  consideration,  however,  the  devel- 
opment of  agriculture  in  some  parts  of  this  ter- 
ritory, is  superior  to  that  of  any  similar  area  in 
the  world. 

The  Pacific  Coast  region  is  divided,  agricul- 
turally, into  five  great  districts,  each  of  which  has 
agricultural  possibilities  peculiar  to  itself.  These 
are: 

!,  Rocky  Mountain   Slopes. 

2.  Great    llasin. 

3.  Sierra    Nevada    Valleys. 

4.  Interior    Valleys    of    California    and    Oregon. 

5.  Coastal    Regions    of    California,    Oregon    and    Washington. 


THE   INLAND  EMPIRE. 

These  five  topographic  regions  merge  some- 
what, but  are,  in  their  broad  lines,  distinct.  Each 
has  its  crops,  its  transportation  and  marketing 
problems,  and  each  will  develop  in  the  future 
along  lines  more  or  less  independent  of  the 
others. 

The  Rocky  Mountain  Region. 

The  Rocky  Mountain  Region  of  the  Pacific 
Coast  includes  that  part  of  Montana,  Idaho,  Wyo- 
ming, Utah,  Colorado  and  New  Mexico  draining 
into,  and  commercially  tributary  to,  the  Pacific 
Coast.  The  area  includes  the  mountain  slopes 
and  elevated  valleys  of  the  states  mentioned.  A 
great  variety  of  climates,  soils  and  agricultural 
possibilities  are  present. 

Owing  to  the  distance  of  the  region  from  large 
cities  and  from  cheap  transportation,  the  agricul- 
tural development  of  an  intensive  character  is 
confined  to  small  areas  around  centers  of  mining 
activity,  and  to  districts  along  the  transconti- 
nental railroads  and  their  branch  lines. 

Grain,  hay,  cattle  and  sheep  are  the  principal 
products,  but  the  growing  of  potatoes  for  ship- 
ment and  fruit  of  a  superior  quality  has  been  de- 
veloped on  a  considerable  scale  at  many  points. 
The  upper  Snake  River  Valley  in  Idaho,  and  the 
country  around  Grand  Junction,  Colo.,  are  ex- 
amples. 

Irrigation  is  necessary  in  all  of  these  higher 
valleys.  The  country  can  be  said  to  be  only 
opened  up,  and  its  possibilities  demonstrated,  by 
these  developments;  the  future  will  see  many 
undeveloped  areas  brought  into  a  high  state 
of  cultivation.  Very  few  localities  now  have  a 
large  area  of  high  class  development,  but  as 
transportation  facilities  and  population  increase 
larger  areas  will  be  improved,  and  we  may  expect 
to  see  a  continued  and  healthy  growth  on  these 
regions. 

A  great  area  in  which  irrigation  cannot  be  car- 
ried on  will,  on  account  of  its  roughness,  doubt- 
less be  devoted  in  the  future,  as  it  has  been  in 
the  past,  to  grazing.  The  valleys  will  be  devoted 
to  the  production  of  grain  and  hay  for  maintain- 
ing and  fattening  the  cattle  grazed  on  the  moun- 
tains and  hills.  The  local  markets  in  mining 
camps  and  cities  along  the  railroads  will  be  sup- 
plied with  produce,  and  a  surplus  of  high  grade 
fruit,  and  such  commodities  as  potatoes  will  be 
shipped  out. 


AGRICULTURE 


79 


Freight  rates  from  this  mountain  region  to  the 
markets  of  the  world  will  always  act  to  prevent 
the  shipping  of  bulky  commodities.  The  produce 
will  probably  be  shipped  out  as  meat,  wool, 
or  other  animal  products.  The  high  quality  of 
the  potatoes,  fruit  and  canned  goods  is  such 
that  there  will  always  be  an  outside  market  for 
them,  and  Colorado,  Utah  and  Montana  potatoes 
and  apples  are  likely  to  be  in  demand. 

This  region  will  benefit  as  little  as  any  from  the 
Panama  Canal,  except  as  the  opening  of  the  canal 
will  cause  great  development  on  the  Pacific  Coast. 
The  canal  will  not  make  the  world's  markets 
more  available  to  Rocky  Mountain  agriculturists. 

The  Great  Basin. 

The  great  basin  is  that  county  between  the 
Rocky  and  Sierra  Nevada  mountains,  and  includes 
parts  of  Idaho,  Washington,  Oregon,  Utah,  Ne- 
vada, Arizona,  and  Eastern  California.  The  region 
is  elevated  in  Southern  Idaho  and  Nevada,  the 
valleys  averaging  over  4,000  feet  above  sea  level, 
but  is  lower  at  the  north  and  south  ends.  In 
Washington  the  elevation  is  generally  less  than 
2,500  feet,  and  in  Southern  Arizona  less  than  3,000 
feet.  The  rainfall  varies  greatly,  from  less  than  5 
inches  per  annum  in  parts  of  Southern  California, 
Arizona,  and  Nevada,  to  25  inches  in  Washington. 
Temperatures  vary  in  a  similar  manner  and,  while 
oranges  are  grown  in  the  south,  there  are  moun- 
tain ranges  covered  with  perpetual  snow. 

Irrigation  is  necessary  in  most  parts  of  the 
great  basin  region.  The  only  portions  where 
farming  without  irrigation  is  possible  are  certain 
parts  of  Northern  Idaho,  Oregon,  and  Washing- 
ton. A  few  districts  are  humid  enough  to  permit 
of  dry  farming  in  parts  of  Utah,  Nevada,  and 
Arizona. 

The  irrigated  valleys  present  highly  cultivated 
and  prosperous  districts,  as  is  seen  in  Southern 
Idaho,  and  in  Utah  and  Arizona.  Much  of  the 
land,  however,  has  no  available  water  supply  and 
is  used  for  pasturage  alone.  Hundreds  of  square 
miles  are  sheep  and  cattle  range,  and  will  always 
remain  so. 

The  soils  of  the  great  basin  vary  greatly,  but 
there  are  larger  areas  of  soil  derived  from  vol- 
canic material.  Washington,  Idaho,  and  Nevada 
are  regions  of  lava  ash  and  lava  soil.  Where 
rainfall  or  irrigation  water  is  available,  the  crops 
produced  are  excellent  and  regular. 

The  crops  of  the  great  basin  are  varied,  oranges 
in  the  south;  fruit  in  Utah  and  in  the  north;  po- 
tatoes in  Idaho;  and  alfalfa,  grains,  and  cattle  in 
all  parts.  Fruits  and  vegetables  are  but  a  small 
part  of  the  total  produce,  but  in  some  districts 
they  become  an  important  item  of  production. 
For  instance,  in  certain  parts  of  southern  Idaho 
fruits  are  important,  and  potatoes  of  a  high  qual- 
ity are  produced.  Oranges  and  grape-fruit,  very 
early  in  bearing,  are  grown  in  Arizona,  and  there 
is  promise  of  considerable  extension  of  this  busi- 
ness. In  Utah,  where  farms  are  small  and  labor 
abundant,  fruits  and  vegetables  are  grown  for 
canning  and  shipping. 

Grain  and  cattle  products  are,  however,   the 


most  important  items  which  go  into  general  com- 
merce. The  grain-growing  regions  of  Oregon  and 
Washington  now  produce  fifty  million  bushels  of 
wheat  yearly  and  are  capable  of  producing  more. 
The  other  parts  of  the  region  do  not  now  produce 
much  more  grain  than  needed  for  local  consump- 
tion. 

Cattle  and  cattle  products  are  everywhere  im- 
portant, and  in  aggregate  these  are  the  most  im- 
portant items  of  agricultural  produce  entering 
the  channels  of  commerce.  The  wide  areas  of 
semi-arid  land,  too  dry  for  farming,  afford  con- 
siderable feed,  and  cattle  and  sheep  produced 
under  range  conditions  are  fattened  for  slaughter 
in  the  irrigated  valleys,  or  shipped  to  other  feed- 
producing  regions.  The  opportunities  for  the 
future  lie  in  the  direction  of  increasing  the  num- 
ber and  quality  of  the  cattle  and  sheep  raised. 

High  freight  rates  will  always  work  against  the 
great  basin  country  and  hold  down  the  shipping 
of  bulky  produce.  It  is  true  that,  in  special  dis- 
tricts, fruit  and  vegetables  of  a  high  quality  will 
always  be  produced  and,  on  account  of  their  supe- 
rior quality,  will  be  shipped  long  distances,  but  in 
the  long  run  sheep,  cattle,  and  their  products, 
will  be  the  staples  and  the  money  makers  for  the 
farmer. 

The  new  lines  of  commerce  introduced  by  the 
opening  of  the  Panama  Canal  will  have  consid- 
erable effect  upon  the  great  basin  region.  Freight 
rates  at  tide  water  are  low  enough  to  enable 
these  regions  to  ship  into  the  world's  markets, 
and  it  is  likely  that  canned  foods,  potatoes,  fruits 
and  grain,  as  well  as  animal  products,  will  be 
shipped. 

The  Sierra  Nevada  Region. 

The  district  designated  the  Sierra  Nevada  Re- 
gion includes  the  mountain  zone  from  Mexico  to 
Canada  which  lies  between  the  great  basin  on 
the  east,  and  the  Interior  Valleys  of  California  and 
Oregon  on  the  west.  The  width  of  this  great 
mountain  belt  varies  from  fifty  to  one  hundred 
miles.  It  includes  a  large  area  of  fertile  valley 
and  hill  land,  but  a  great  area  is  too  rough  for 
anything  but  grazing  or  forestry. 

Much  of  the  area  is  now  occupied  by  National 
Forests,  and  by  forest  land  in  private  ownership 
The  lower  mountain  slopes  are  well  suited  to 
fruit  culture,  and  the  valleys  for  production  of 
all  kinds  of  produce  suited  to  the  climate.  The 
east  slope  is  much  drier  than  the  west  slope  and 
much  smaller  in  area,  for  the  distance  between 
the  mountain  crest  and  the  great  basin  region  is 
short.  To  the  west  the  slope  is  gradual,  and  the 
area  of  land  suited  for  agriculture  is  large. 

Very  little  of  this  region  is  now  farmed.  Much 
of  it  is  grazed  by  cattle  and  sheep,  and  it  is  only 
where  the  transcontinental  railroads  cross  the 
range  that  the  area  of  farmed  land  is  large.  Such 
a  farming  area  is  found  along  the  Southern  Paci- 
fic Railroad  from  Sacramento  to  Reno. 

Large  areas  of  land  of  great  potentiality  are 
found  in  all  three  states  traversed  by  this  great 
mountain  range  and  it  is  likely  that  future  gen- 
erations will  see  much  of  this  now  undeveloped 


80 


AGRICULTURE 


HOPS  IN  THE  SACRAMENTO  VALLEY,  CAL. 


land  cultivated,  irrigated  and  producing  crops. 
Fruit  and  fruit  products  will  be  the  greatest  item 
in  production,  but  cattle  and  animal  products 
will  be  important  on  account  of  the  area  of  land 
which  is  too  high  and  too  rough  for  anything  but 
pasturage. 

The  Interior  Valleys  of  California  and  Oregon. 

The  Interior  Valleys  of  California  and  Oregon 
lie  between  the  Sierra  Nevada  Mountains  and 
the  Coast  Range.  The  San  Joaquin  and  Sacra- 
mento Valleys  in  California,  and  the  Willamette 
Valley  in  Oregon  are  the  most  important  regions. 

These  valleys  are  warm  in  summer,  with  very 
mild  winters;  have  large  areas  of  excellent  soil, 
and  quantities  of  water  for  irrigation;  are  sur- 
rounded by  mountains  rich  in  minerals  and  oil, 
with  tremendous  quantities  of  water  power  de- 
veloped and  awaiting  development.  Deep  water 
transportation  is  available  in  both  valleys,  and 
rail  transportation  is  well  developed. 

The  products  are  varied,  almost  every  crop 
grown  in  the  United  States,  with  the  exception  of 
a  few  strictly  tropical  plants,  is  grown  here,  and 
there  are  such  varieties  of  soils  and  situations  that 
some  spot  may  be  found  where  each  crop  can  be 
produced  commercially.  There  is  no  region  in 
America  where  a  greater  variety  of  products  may 
be  found.  Grain  has  long  been  the  staple  crop, 
but  as  irrigation  is  developed,  grain  gives  way  to 
horticulture,  dairying,  gardening,  sugar  beets 
and  hops.  Cotton,  tobacco,  and  rice  have  been 
grown  on  a  small  scale,  and  the  near  future  will 


see  these  rapidly  extended.  Cattle  and  sheep 
summer  in  the  surrounding  mountains,  and  wint- 
er in  the  valleys.  Hops,  barley,  and  vines  furn- 
ish the  stimulants  for  the  nation  and  there  is  the 
opportunity  for  great  extension  of  these  crops 
when  temperance  instead  of  prohibition  becomes 
the  rule  in  the  United  States. 

These  valleys  are,  in  many  places,  highly  de- 
veloped, and  support  confortably  a  large  popula- 
tion in  a  small  area.  Such  regions  as  those  around 
Fresno  and  Modesto  in  California  have  consid- 
erable areas  where  a  family  is  comfortably  sup- 
ported by  the  produce  from  ten  or  twenty  acres, 
and  there  are,  in  California  and  Oregon,  several 
million  acres  capable  of  equally  high  develop- 
ment. The  great  valleys  of  California  and  Ore- 
gon could  support  five  million  people  in  comfort. 

The  nearness  of  these  valleys  to  tidewater  is  an 
important  factor  in  their  favor.  Tidewater  en- 
ters the  lower  part  of  the  valleys  in  both  cases. 
Steam  roads  and  electric  lines  are  being  con- 
stantly developed  to  transport  produce  to  the 
cities  and  to  tide  water. 

The  products  of  these  valleys  already  enter  ex- 
tensively into  the  world's  commerce.  Califor- 
nia grain,  wines,  and  dried  fruits,  and  Oregon 
hops,  are  shipped  to  Europe  in  direct  competi- 
tion with  European  grown  produce. 

These  valleys  have  a  variety  of  soils,  and  con- 
ditions which  permit  regular  and  heavy  crops 
to  be  produced.  The  climate  is  dry  and  the 
sunshine  strong  in  summer,  making  the  harvest- 
ing of  crops  sure  and  the  quality  good. 


AGRICULTURE 


81 


As  yet,  water  transportation,  though  available, 
has  had  a  small  part  in  the  development  of  these 
valleys.  The  greater  part  of  the  higher  valued 
produce  goes  east  by  rail,  but  grain,  hops,  dried 
fruits,  and  wines  are  sent  to  Europe  and  the  At- 
lantic coast  by  water.  The  Panama  Canal  will 
open  the  way  for  more  extensive  shipments  of 
these  commodities,  and  it  is  likely  that  vessels 
equipped  for  refrigeration  will  permit  shipment, 
by  the  canal  route,  of  oranges,  grapes,  apples,  and 
other  fruits  now  shipped  by  rail. 
Coastal  Regions,  California,  Washington  and  Oregon. 

The  coastal  regions  of  California,  Washington, 
and  Oregon  include  that  portion  of  the  coast 
which  derives  its  climate  directly  from  the  Pa- 
cific Ocean,  where  the  temperatures  are  gener- 
ally low,  there  is  little  frost,  and  more  rain  than 
in  the  interior  valley. 

In  southern  California,  the  rainfall  varies  from 
12  to  15  inches.  Northward  there  is  a  gradual  in- 
crease until,  in  Washington  and  Oregon,  the  fall 
is  from  100  to  120  inches.  There  is  a  correspond- 
ing gradual  change  in  crop  possibilities,  and  in 
native  vegetation.  In  southern  California,  the 
land  is  scarcely  timbered  at  all,  and  the  agricul- 
tural products  are  largely  of  a  sub-tropical  na- 
ture. In  central  and  northern  California,  grain, 
beans,  alfalfa,  truck,  and  dairying  are  the  rule. 
In  the  north,  dairying  is  the  greatest  industry. 

These  coast  regions  have  a  climate  which  is 
regarded  as  superior  to  any  of  the  interior  cli- 
mates, and  for  that  reason  are  apt  to  fill  up  with 
a  large  population.  We  have  today  an  example 
of  this  dense  population  in  southern  California. 
Almost  the  entire  orange  belt  lies  in  the  coastal 
region.  A  similar  condition  prevails  in  many  of  the 
smaller  valleys  which  open  out  on  the  Pacific 
Ocean,  such  as  the  Salinas  Valley,  and  the  valleys 
at  each  end  of  the  San  Francisco  Bay.  The  por- 
tions of  this  region  in  north  California,  Oregon, 
and  Washington,  are  now  only  partially  devel- 
oped, but  we  may  expect  a  large  influx  of  set- 
tlers who  will  farm  the  valleys  and  clear  the 
low  mountains  and  foot  hills  for  the  planting  of 
fruit.  This  region  will  be  largely  farmed  for 
the  purpose  of  supplying  the  coast  cities; 
comparatively  few  products  will  be  grown  for 
shipping  or  export.  There  are  important  excep- 
tions, however.  The  citrus  fruits  of  southern 
California  are  one  of  the  State's  largest  export 
crops,  and  important  fruit  centers  have  been  de- 
veloped in  a  number  of  other  valleys,  such  as 
the  Pajaro  and  Santa  Clara  valleys,  south  of  San 
Francisco.  Other  important  centers  of  fruit 
growing  will  later  be  developed  in  the  north. 

These  fruits  will  be  shipped  to  eastern  markets 
by  rail  or  the  Panama  Canal. 

The  Agricultural  Problems  of  the  Pacific  Coast. 

The  statements  above  outlined  briefly  review 
the  physical  conditions  of  each  of  the  important 
districts  of  the  Pacific  Coast,  and  call  attention 
to  the  products  which  these  districts  grow  for 
shipment.  It  is  easy  to  see  that  the  development 
of  the  Pacific  Coast  is  yet  in  its  infancy,  and  while 
no  portion  of  the  United  States  has  had  more 


rapid  development  or  greater  increase  in  popula- 
tion in  the  last  twenty-five  years,  it  is  equally 
true  that  in  the  near  future  we  may  expect  a 
much  greater  advance.  There  are  certain  prob- 
lems, however,  which  must,  sooner  or  later,  be 
settled  by  the  people  who  come  into  these  regions. 

The  first  problem,  on  the  settlement  of  which 
will  depend  the  future  of  the  country,  is  that  of 
markets  for  produce.  The  second  problem,  which 
has  been  seriously  considered  in  many  regions  of 
the  west,  is  that  of  the  supply  of  agricultural 
labor.  The  third  problem  is  that  of  securing  set- 
tlers for  much  of  the  land  which  now  lies  idle, 
or  which  is  held  in  large  tracts. 

The  Markets  for  Pacific  Coast  Products.The  mar- 
kets for  Pacific  Coast  products  are  to- 
day well  developed,  but  a  large  increase  in  the 
production  of  any  one  crop  would  cause  disaster. 
For  instance,  the  orange  business  has  been  de- 
veloped from  a  small  beginning  to  shipments  ex- 
ceeding 40,000  carloads  per  annum.  It  happens 
that  Florida  is  now  increasing  products  of  citrus 
fruits  to  a  great  extent,  and  any  further  in- 
crease in  the  production  of  the  Pacific  Coast  will 
have  to  meet  Florida  campetition,  or  seek  a  mar- 
ket elsewhere.  Again,  the  apple  industry  of 
Washington  and  Oregon  has  been  developed  fast- 
er than  regular  markets  for  the  produce  have 
been  secured,  and  there  are  now  years  when 
fruit  brings  low  prices.  These  low  prices  are, 
without  doubt,  largely  due  to  competition  from 
districts  nearer  the  point  of  consumption.  Until 
the  people  of  the  Pacific  Coast  have  developed 
and  secured  a  permanent  market  for  their 
fruit,  they  will  always  have  this  fluctuation 
in  prices.  It  is  thought  that  the  Panama  Canal 
will  open  new  channels  of  trade  and  thus  enable 
the  people  of  the  Pacific  Coast  to  overcome  these 
difficulties  by  shipment  of  their  products  over  a 
wider  area. 

The  fruit  business  is,  however,  by  no  means 
the  only  agricultural  industry  which  has  prob- 
lems of  marketing.  The  grain  crops  are  generally 
sold  without  difficulty,  but  there  are  times  when 
the  hay  crop  exceeds  the  demand  and  prices  are 
low.  At  present  this  is  due  to  the  scarcity  of 
feeding  cattle  for  the  consumption  of  hay,  high 
prices  for  beef  having  recently  caused  large  num- 
bers of  young  animals  to  be  sold.  It  will  nat- 
urally come  about  that  the  herds  of  the  west 
will  be  built  up,  though  this  is  going  to  be  dif- 
ficult as  long  as  young  cattle  continue  high  in 
price,  but  once  the  industry  is  re-established, 
there  should  be  a  smaller  fluctuation  in  hay 
prices.  The  time  will  rapidly  come  when  the 
small  farmer  who  has  a  few  acres  of  hay  will  pro- 
duce a  few  animals  for  slaughter  and,  by  thus 
creating  a  market  for  his  own  forage  crops,  be 
independent  of  the  general  market  prices  for 
such  produce. 

The  Labor  Problem.  Many  of  the  industries  of 
the  Pacific  Coast  are  highly  specialized  and  a 
large  amount  of  labor  is,  each  year,  required 
for  short  periods;  for  example,  the  fruit  pick- 
ing and  hop  picking  seasons.  The  hay  har- 
vest, which  extends  over  a  longer  period 
than    in    the    east,    also    requires    considerable 


82 


AGRICULTURE 


extra  labor  and  coincides  with  the  busy- 
season  in  the  mountain  lumber  camps.  The  con- 
sequence is  that  there  are  often  periods  when 
labor  is  scarce  In  parts  of  the  west,  and  the  farm- 
er has  to  put  up  with  very  inferior  help,  despite 
the  fact  that  prices  for  agricultural  labor  in  the 
west  are  higher  than  in  the  eastern  states. 

This  condition  will  slowly  right  itself  as  the 
large  holdings  are  cut  up.  An  increase  in  the 
number  of  small  farms  results  in  a  large  amount 
of  labor  being  brought  into  the  country.  The 
women  and  children  will  be  able  to  do  much  in 
the  way  of  fruit  and  hop  picking,  leaving  the  men 
free  for  the  hay  and  grain  harvests.  It  is  further- 
more expected  that  cheap  passenger  rates  will 
be  established  via  the  Panama  Canal  bringing  im- 
migrants from  European  countries,  who  will  nat- 
urally drift  to  the  farms,  and  much  healthier 
labor  conditions  will  be  the  result.  It  is  not  likely 
that  much  of  this  labor  will  come  supplied  with 
capital  sufficient  to  enable  them  to  buy  farms, 
but,  wherever  government  lands  are  available, 
they  will  settle  on  them  and  secure  their  living, 
while  developing  their  own  farms,  by  working  on 
adjoining  places.  It  is  unfortunate  that  public 
sentiment  on  the  coast  is  now  so  strongly  un- 
favorable to  certain  classes  of  Oriental  labor,  for 
no  other  people  have  been  able  to  give  us  the 
services  required  at  such  a  low  rate  of  pay. 

The  Settlement  of  the  West.  The  settlement' of 
the  west  has  only  begun.  It  will  easily  be  pos- 
sible to  support  a  population  five  times  as  great 
as  that  now  found  there.  Climatic  conditions 
are  favorable;  health  conditions  are  good; 
the    splendid    class    of    pioneers    who    settled 


the  west  have  built  up  social  and  political  insti- 
tutions which  are  attractive  to  thinking  people. 
All  of  these  together  are  serving  to  interest 
people  the  world  over  in  the  Pacific  Coast. 
Now  that  the  Government  has  undertaken  the 
development  of  the  irrigation  resources  of  the 
country,  and  has  settled  upon  a  fixed  policy  re- 
garding other  natural  resources,  this  population 
is  bound  to  come,  and  come  to  stay. 

It  is  unfortunate  that  the  real  development  of 
the  west  has  been  made  a  business  of  money 
making  on  too  large  a  scale.  The  sale  of  land 
at  high  prices  has  been  the  one  great  motive 
which  is  back  of  practically  all  settlement  in  the 
west.  The  rise  in  land  values  has  been  extra- 
ordinary and  to-day,  in  California,  Washington, 
Oregon,  and  other  states  of  the  west,  land  is  of- 
fered to  settlers  at  prices  ten  times  its  value  a  few 
years  ago.  It  is  claimed  that  the  prices  now  be- 
ing asked  are  justified  by  the  return  that  the  lands 
will  give,  but,  whether  this  is  true  or  not,  high 
prices  are  discouraging  settlers,  and  the  west 
is  suffering  in  consequence.  However,  operators 
are  beginning  to  realize  their  mistakes,  and  are 
taking  steps  to  rectify  them,  as  elsewhere  cited 
in  this  volume. 

Natural  conditions  on  the  Pacific  Coast  have 
made  possible  a  remarkably  rapid  development  of 
that  territory  in  the  last  sixty  years.  Its  future 
development,  to  which  the  Panama  Canal  will 
contribute,  will  be  even  more  rapid.  The  pres- 
ent tendency  is  toward  development  of  a  con- 
stantly more  intensive  character.  This,  together 
with  an  ever  broadening  market  for  its  products 
will  result  in  greater  prosperity. 


■  ■  "f    ^ML 


ALL  READY  TO  PICK  APPLES  IN  OREGON. 


AGRICULTURE 


83 


INTENSIVE  FARMING  ON  A  LARGE  SCALE 
By  S.  F.  B.  Morse 

The  farming  industry  has  not,  until  within  a  few 
years,  been  regarded  with  favor  by  the  large  investor. 
Bad  seasons,  lack  of  rain,  or  too  much  rain  have  ren- 
dered the  return  uncertain  and  the  interest  item  has 
been  considered  hazardous  when  directly  dependent 
upon  crops ;  although  the  fact  that  principal  invested 
in  the  industry  has  been  deemed  sufficiently  secured 
is  evidenced  by  the  enormous  aggregate  loaned  on 
farm  mortgage  by  such  large  investors  as  the  Insur- 
ance companies. 

That  this  general  attitude  on  the  part  of  capital 
has  been  successfully  defied  is  illustrated  by  the  great 
fortunes  built  up  in  earlier  days  by  the  "wheat 
kings"  and  other  large  operators  of  the  Pacific  Coast. 


describe  here  only  such  of  its  phases  as  bear  directly 
on  the  subject  in  hand. 

Irrigation  greatly  reduces  the  uncertainty  of  farm- 
ing and,  owing  to  the  fact  that  the  Pacific  Coast  has 
a  wet  and  a  dry  season,  the  danger  of  injury  to  crops 
by  summer  rains  is  practically  eliminated.  It  has 
been  the  general  opinion  that  irrigated  farming, 
which  is  of  necessity  intensive,  must  be  limited  to  the 
small  farmer,  the  average  size  of  an  irrigated  farm 
in  California  being  twenty  acres.  The  difference  be- 
tween the  earning  power  per  acre  of  dry  farmed  or 
grain  land,  and  that  of  irrigated  land,  was  bo  wide 
that  the  majority  of  large  investment  in  agricultural 
projects  up  to  the  present  time  has  been  along  the 
lines  of  acquiring  tracts  of  arid  land,  developing  irri- 
gation, and  offering  the  land  for  sale  to  small  farmers 
or,  as  they  are  commonly  called,  colonists. 

The  most  inexpensively  developed  irrigation 
project  is  one  where  the  land  is  adjacent  to  a  stream, 


Tractor  and   24   disc   plows   cutting  a    16-foot  furrow  in  dry   sod  land   and  covering  over  4  acres  per  hour. 


These  men  were,  almost  without  exception,  "one 
crop"  men.  In  spite  of  the  large  average  return  that 
their  operations  showed,  floods,  droughts,  or  other 
causes  of  crop  damage  or  failure  occasioned  them 
heavy  periodic  losses — sometimes  through  a  series  of 
years.  This  fact  did  not  tend  to  change  the  attitude 
of  capital  toward  large  single  investments  in  the 
farming  industry. 

The  first  primitive  experiments  in  irrigation  in 
California  quickly  served  to  demonstrate  the  eco- 
nomic error  of  such  operations.  The  case  of  the 
"wheat  kings'  was  analogous  to  that  of  Mark 
Twain's  pseudo  prince  "Tom  Canty,"  who  used  the 
Great  Seal  of  England  "to  crack  nuts  with."  They 
were  raising  seventeen  bushels  of  wheat  per  year, 
less  deductions  ior  losses  and  fallow  years,  on  an 
acre  of  land  which,  with  the  additional  investment 
required  for  irrigation  would,  in  seven  years,  yield 
annually  one  ton  of  olives,  and  in  ten  years,  two 
tons.  Investors  were  quick  to  see  the  obvious  and 
the  conversion  of  great  grain  farmed  tracts  to  diversi- 
fied farming  under  irrigation  has  since  been  steadily 
carried  on. 

As  the  subject  of  irrigation  is  separately  treated 
in    another   article    it   is    the   writer's   intention   to 


the  flow  of  which  is  constant  enough  to  furnish  suffi- 
cient water  for  irrigating,  and  where  there  are  no 
difficult  engineering  features  involved  in  diverting 
the  water  from  the  stream  onto  the  land.  Projects 
of  this  type  were,  of  course,  the  first  to  be  developed. 
Those  who  were  able  to  acquire  large  tracts  of  land 
so  located,  at  a  price  based  upon  its  value  when  grain 
farmed,  realized  enormous  profits  from  its  sale  in 
twenty  acre  tracts  under  irrigation.  The  succe.-~  of 
the  early  investors  gave  such  an  impetus  to  the  busi- 
ness of  developing  large  irrigation  tracts  that,  at  the 
present  time,  there  remains  no  arid  land  capable  of 
simple  irrigation,  save  at  a  price  based  upon  its  pos- 
sible earning  powrer  when  irrigated  rather  than  on 
its  present  earnings.  Furthermore,  all  of  the  inex- 
pensively developed  river  waters  which  can  be  used 
for  direct  irrigation  have  been  appropriated.  The 
future  irrigation  supply  must  be  had  by  means  of 
expensive  storage  or  pumping  stations. 

Of  land  and  water  available  by  such  methods 
there  is  still  abundant  supply.  Great  as  has  been 
the  influx  of  settlers,  particularly  to  California,  it  is 
a  fact  that  of  the  fourteen  millions  of  acres  suscept- 
ible to  intensive  cultivation  in  the  San  Joaquin  and 
Sacramento  Valleys  alone,  there  are  less  than  three 


84 


AGRICULTURE 


million  acres  actually  irrigated  and  settled.  There  is 
very  little  agricultural  land  in  the  entire  state  that 
cannot  be  supplied  with  sufficient  water  for  irriga- 
tion by  one  of  the  two  methods  above  mentioned. 
All  of  the  streams  of  the  semi-arid  west  have  tre- 
mendous flood  discharges  in  the  winter  and  spring 
caused  by  winter  rains  and  melting  snows  in  the 
mountains.  These  flood  discharges  are,  for  the  most 
part,  unused,  as  they  seldom  occur  during  the  irri- 
gating season.  It  has  been  estimated  that  the  flood 
discharges  of  the  streams  emptying  into  the  San 
Joaquin  and  Sacramento  rivers  are,  if  stored,  of  suffi- 
cient volume  to  irrigate  every  acre  of  agricutural 
land  in  the  valleys;  and  that  sufficient  practical  stor- 
age sites  exist  to  hold  these  flood  waters. 

The  San  Joaquin  and  Sacramento  valleys  are  the 
agricultural  backbone  of  California  and,  as  Southern 
California  is  already  in  a  high  state  of  development, 
they  will  be  the  field  for  the  greatest  development  in 
the  future. 

In  an  article  recently  published  by  the  Modesto 
Chamber  of  Commerce,  certain  statistics  for  the  year 
1912  were  quoted  showing  that  in  the  Modesto  Irri- 
gation District  the  average  value  per  acre  of  all  prod- 
ucts grown  amounted  to  $137.16.  After  deducting 
50%  of  the  gross  as  ' 
the  necessary  cost 
of  caring  for  the 
land  harvesting 
crops,  water 
charges,  etc.,  the  net 
production  amounts 
to  6%  on  a  valu- 
ation of  $1,143 
per  acre.  Despite 
the  showing  made 
by  these  figures 
a  number  of 
the  largest  agricul- 
tural projects  on 
the  coast  have  met 
with  severe  reverses 
in  the  last  two 
years  and  are  now 
in  difficulties  and 
process  of  re-adjust- 
ment. 

The  failure  of 
nearly  every  one  of  these  projects  has  been  due  to  a 
mistake  in  policy  or  to  bad  management  rather  than 
to  any  intrinsic  fault  in  the  physical  property,  such 
as  poor  land  or  insufficient  water.  The  increased 
cost  of  land  and  of  water,  and  the  large  overhead  ex- 
pense entailed  by  present  methods  of  subdividing 
and  selling,  together  with  the  development  of  a 
supply  of  small  irrigated  tracts  actually  exceeding 
the  demand  and  the  resulting  competition  between 
the  selling  companies,  have  reduced  the  chances 
of  financial  success  for  such  companies  to  a  mini- 
mum. Competition  has  been  so  keen  that  great 
extremes  have  been  resorted  to  in  connection  with 
the  selling  of  such  small  irrigated  tracts.  Many 
companies  maintain  extensive  offices  with-  a  number 
of  branches  throughout  the  country,  pay  large  com- 
missions, and  indulge  in  extravagantly  expensive  and 
badly  planned  advertising  campaigns.  Nearly  all 
are  compelled  to  allow  the  purchaser  several  years  in 
which  to  pay  for  his  property. 

The  basic  error  in  the  methods  that  have  been 
employed  is  the  fact  that  the  developing  companies 
have  depended  entirely  upon  the  sales  of  land,  not 
only  for  the  ultimate  return  of  their  initial  invest- 
ment, but  also  for  the  payment  of  interest,  overhead 
charges,  and  their  profits.    Hard  times,  over  supply, 


Caterpillar    tractor    with    two-furrow   ditching  plow  building  irrigation  ditch  and  levee 

at  the  same  time. 


or  any  one  of  a  number  of  possible  conditions  that 
hinder  their  ability  to  make  sales,  may  force  the 
companies  to  offer  their  properties  in  small  parcels 
at  far  below  their  real  value,  in  a  vain  attempt  to 
meet  fixed  and  current  charges.  Yet  these  companies 
have  made  no  expenditures  in  the  actual  farming  of 
the  land. 

The  majority  of  the  colonists  came  to  the  coast 
from  abroad  or  from  the  middle  west.  In  most  cases 
they  are  unfamiliar  with  local  conditions  and  with 
irrigation,  and  have  only  enough  money  to  make  a 
reasonable  payment  on  their  land  and  equip  them- 
selves to  start  farming.  Generally  the  colonist  is  de- 
pendent upon  the  immediate  success  of  his  operations 
for  his  living  and  for  the  funds  requh*ed  to  defray  the 
deferred  payments  on  his  land,  which,  as  a  ride,  con- 
sist of  five  equal  annual  payments,  with  interest  on 
balances  at  the  rate  of  7%  per  annum.  Even  if  the 
land  he  purchases  is  excellent,  the  climatic  conditions 
good,  and  the  water  supply  adequate,  his  success, 
under  this  handicap,  is  problematical ;  yet  upon  his 
success  hangs  that  of  the  company  from  whom  he 
buys  if  they  are  depending  entirely  upon  the  sale 
of  their  lands  to  meet  their  financial  requirements. 
If  the  colonist  fails,  not  only  does  the  land  revert 

to  the  seller  but  the 
reputation  of  the 
entire  project  suf- 
fers, making  future 
sales  increasingly 
difficult. 

In  view  of  these 
facts  it  is  stran.ue 
that  the  large  in- 
vestor, in  casting 
about  for  a  more 
substantial  finan- 
cial plan,  has 
neither  contem- 
plated nor  investi- 
gated the  possibil- 
ities of  intensive 
farming  on  a  large 
scale  as  the  logical 
solution  of  his  prob- 
lems in  meeting 
carrying  charges 
and  overhead  ex- 
pense; the  items  which  have  been  the  primary  cause 
of  so  many  failures.  If  the  small  farmer  with  lim- 
ited means  and  narrow  viewpoint  can,  in  un-num- 
bered  instances,  make  a  success  of  such  farming  on  a 
small  scale,  the  business  man  with  adequate  capital, 
scientific  management,  and  labor  saving  devices,  can 
make  an  even  greater  success  on  a  large  scale.  Broad, 
axiomatic  business  principles  pertain  to  this  industry 
as  well  as  to  any  other,  if  applied  with  equal  intelli- 
gence. 

Farming  projects  so  handled  under  able  manage- 
ment give  the  investor  a  high  rate  of  return  and  per- 
mit of  his  holding  developed  lands  for  higher  prices 
and  disposing  of  the  property  in  accordance  with  the 
natural  laws  of  supply  and  demand  at  an  ultimately 
greater  profit.  Likewise,  when  fully  developed 
lands,  from  which  the  colonists  can  be  assured  of 
an  immediate  return,  are  sold  on  the  partial  payment 
plan,  the  security  to  the  seller  is  much  greater  for  the 
unpaid  portions  of  the  purchase  price.  In  the 
Modesto  district  above  mentioned,  land  may  be  pur- 
chased at  $125  yielding  a  C>%  return  on  a  valuation 
of  $1,143.  It  is  obvious  that  the  large  investor,  pur- 
chasing land  in  large  tracts  at  much  less  than  this 
retail  price,  and  developing  his  own  water  supply,  is 
presented  with  greater  possibilities  in  the  develop- 


AGRICULTURE 


85 


ment  and  operation  of  the  land  than  in  the  re-sale 
in  small  parcels  at  prevailing  values. 

There  are  certain  crops  for  irrigated  areas  that 
are  particnlaly  suited  to  fanning  on  a  large  Kale. 
Perhaps  the  most  important  of  these  is  alfalfa,  which 
is,  of  course,  a  staple.  It  is  the  forage  crop  of  the 
southwest,  being  paritcularly  valuable  in  the  feeding 
of  all  types  of  work  stock  and  dairy  cows,  and  in  fat- 
tening cattle,  hogs  or  sheep.  It  is  the  niost  common 
crop  grown  by  the  twenty  or  forty  acre  farmer. 

There  are  other  crops  that  it  is  practical  to  grow- 
on  a  large  scale  under  irrigation  ;  the  olive,  for  which 
there  is  a  constantly  increasing  demand,  an  espe- 
cially hardy  tree  bearing  for  practically  an  unlimited 
length  of  time;  the  fig,  of  which  much  the  same 
can  be  said;  the  sugar  beet;  the  onion;  the  potato 
(all  being  among  the  hardier  types  of  roots).  Within 
the  last  year  or  two  cotton  has  been  proved  to  be  a 
profitable  crop  in  certain  sections  of  California.  In 
fact,  an  eminent  authority  states  that  there  is  no 
crop  grown  in  the  United  States  which  cannot  be 
grown  to  advantage  in  California,  under  irrigation. 
It  i-  simply  a  question  of  the  selection  of  the  crop 
best  suited  to  the  land,  which  can  be  handled  to  ad- 
vantage on  a  large  scale. 

The  developer 
of  an  irrigation 
project  which  is  to 
be  operated  on  a 
large  scale  has  a) 
distinct  advantage 
in  that  he  can  so 
prepare  his  land  as 
to  make  irrigation 
adequate  and  inex- 
pensive, and  pro- 
vide for  proper 
drainage. 

Under  a  dis- 
trict, or  co-opera- 
tive plan,  the  small 
farmer  must  be 
satisfied  with  a  re- 
stricted quantity  of 
w  a  t  e  r,  available 
only  at  certain  intervals,  ami  he  ordinarily  meets  with 
a  serious  problem  in  drainage,  owing  to  the  fact  that 
his  excess  water  must  either  remain  on  his  own  land, 
or,  in  discharging,  prove  an  injury  to  his  neighbor. 
Of  course,  in  certain  districts,  such  difficulties  have 
been  largely  obviated,  but  the  fact  remains  that  a 
large  tract  operated  by  one  management  can  be  made 
to  yield  a  return  much  greater  than  the  same  num- 
ber of  acres  cut  up  into  small  tracts  under  several 
hundred  individuals. 

Even  if  it  is  the  ultimate  intention  to  dispose  of 
the  tract  in  small  parcels,  it  is  the  course  of  wisdom 
to  develop  all,  or  a  large  portion,  of  it  for  immediate 
operation,  to  provide  for  interest  and  overhead  ex- 
penses. The  project  thus  developed  is  independent 
of  any  of  the  causes  of  adverse  selling  conditions. 
The  chance  of  failure  of  either  seller  or  buyer  is  re- 
duced to  a  minimum.  It  is  along  such  lines  that  the 
irrigation  project  of  the  future  musl  be  handled  in 
order  to  obtain  for  the  investor  the  surest  and  high- 
est return. 

There  have  recently  been  some  projects  that  have 
been  handled  exactly  along  the  lines  above  outlined. 
In  most  instances  with  which  the  writer  is 
familiar,  the  operating  returns  have  been  so 
much  greater  than  was  anticipated  that  it  has  been 
deemed  inadvisable  to  market  any  of  the  property 


A   tractor   pulling  a   battery   of  scrapers.  Grading  and  leveling  land  ready  for  water. 


in  small  tracts  at  current  prices.  A  fair  example  of 
the  advantage  of  intensive  farming  on  a  large  scale 
has  come  to  the  observation  of  the  writer  in  the  case 
of  a  company  holding  a  tract  of  nearly  seventy  thou- 
sand acres  in  the  San  Joaquin  Valley  in  Califor- 
nia. Interesting  comparisons  are  available  between 
its  operations  and  those  of  the  adjoining  farmers  of 
small  tracts.  This  company  has  ample  financial  back- 
ing and  owns  one  of  the  old  holdings  of  the  state,  to 
which  it  has  added  from  time  to  time  as  occasion  de- 
manded. From  grain  farming  the  company  has  pro- 
gressed, step  by  step,  through  various  phases  of  oper- 
ating as  experience  and  conditions  have  dictated 
changes.  It  was  one  of  the  first  to  develop  a  large  irri- 
gation system,  yet  for  years  did  little  farming  on  its 
own  account,  depending  entirely  upon  the  subdivi- 
sion and  sale  of  its  property  in  small  parcels  for  its 
revenue,  disposing  of  several  thousand  acres  in  this 
manner.  Later  it  did  small  development  in  the  line  of 
producing  alfalfa,  gradually  working  into  the  husi- 
iiess  on  a  larger  scale. The  company  now  has  nearly 
three  thousand  acres  in  a  single  tract  of  alfalfa  and  in- 
tends to  increase  this  to  ten  thousand  acres.  A  direct 
comparison  of  the  methods  and  results  obtained  by 
the  colonists  on  the  one  hand  and  the  company  on 

the  other  are  avail- 
able. The  company 
has  taken  units  of 
three  thousand 
acres  and  first  plat- 
ted these  lands  in 
twenty  acre  tracts, 
then  surveyed  an  ir- 
rigation system  and 
a  drainage  in 
such  a  manner  as  to 
make  each  unit  a 
block  of  perfectly 
drained  and  irri- 
gated twenty 
farms.  The 
pose  of  first 
dividing  the 
has  been  to  make  it 
possible,  should 
conditions  warrant,  to  dispose  of  the  property 
in  small  blocks  in  the  shape  of  developed  and  pro- 
ducing farms.  But  the  work  is  done  in  such  a  man- 
ner as  not  to  handicap  in  any  way  the  ease  and 
economy  of  operating  the  property  as  a  whole.  The 
use  of  tractors  and  heavy  disc  gang  plows  has  made 
it  possible  for  the  company  to  do  better,  more  rapid, 
and  more  economical  work  than  can  be  done  by  the 
colonist  with  small  horse-drawn  implements.  The 
company  has  also  developed  a  special  type  of  leveler 
designed  for  use  with  a  tractor  which  reduces  the 
cost  of  leveling  to  one-half  of  what  it  is  when  done 
with  horse  drawn  Fresno  scrapers;  the  only  avail- 
able method  for  the  small  farmer.  By  the  employ- 
ment of  these  methods  the  company  is  independent 
of  unskilled  labor.  There  is  but  a  small  and  ex- 
tremely undependable  floating  supply  of  such  labor 
in  California  and  it  is  the  cause  of  one  of  the  most 
serious  problems  facing  the  ordinary  developer.  On 
the  developed  portions  of  the  company's  alfalfa  fields 
certain  crops  are  cut  and  cured.  The  cuttings  are, 
for  the  most  part,  chopped,  and  blown  by  machinery 
into  large  storage  feed  sheds  for  the  winter  feeding  of 
beef  cattle.  The  food  value  of  chopped  alfalfa  hay 
is  much  higher  than  that  of  unchopped  hay.  Other 
crops  are  allowed  to  mature  on  the  ground  and  are 
pastured  off  by  beef  steers  being  fattened  for  market. 


acre 
pur- 
sub- 
land 


86 


AGRICULTURE 


At  first  all  of  the  company's  fattened  cattle  were  sold 
on  the  hoof  to  large  packing  establishments.  Later, 
realizing  that  neighboring  communities  could  be 
easily  supplied  with  dressed  beef,  the  com- 
pany installed  its  own  abattoir  and  cold  storage  plant 
which  was  made  large  enough  to  handle  much  of  the 
live  stock  produced  by  small  local  operators  in  ad- 
dition to  the  entire  product  of  the  company's  own 
ranch.  Having  recently  added  to  their  holdings  large 
tracts  of  grange  lands  on  which  cattle  are  raised 
to  be  alfalfa-fattened  for  killing,  this  product  is  con- 
siderable. So  successful  has  the  company  been  with 
its  dressed  beef  operations  that  it  now  contemplates 
the  purchase  of  a  chain  of  retail  butcher  shops.  Many 
of  the  neighboring  colonists,  on  the  other  hand,  are 
not  in  a  position  to  consume  the  alfalfa  that  they 
produce  but  are  obliged  to  haul  it  to  market  and  dis- 
pose of  it  subject  to  variations  in  price.  It  so  hap- 
pens that  in  the  season  of  1914  there  has  been  a 
large  supply  of  alfalfa  hay  and  small  farmers  are 
receiving  a  low  price.  On  the  other  hand,  while  hay 
is  cheap,  beef  is  high  and  the  company,  which  is 
marketing  its  alfalfa  in  the  form  of  dressed  beef,  is 
receiving  a  handsome  price  and  making  a  large 
profit  with  much  less  cost  of  handling.  Many  of 
the  colonists  are  fattening  beef  on  a  small  scale; 
many  are  raising  and  feeding  hogs  on  alfalfa;  and 
many  are  operating  dairies.  Here  again  the  large 
operator  has  a  distinct  advantage.  The  company 
has  control  of  the  dressed  meat  market  over  a  con- 
siderable extent  of  local  territory  and  is  independ- 
ent of  the  middle  man,  whereas  the  colonist  is  not. 
In  fact  the  company  is  in  the  position  of  making  the 
middleman's  profit  on  the  product  of  the  colonist, 
a  large  portion  of  which  the  company  handles,  as 
well  as  saving  that  profit  on  its  own  product.  In 
addition  to  these  obvious  items  there  are  many  ways 
in  which  this  company,  on  account  of  the  size  of 
its  holdings  and  the  magnitude  of  its  operations,  ef- 
fects   minor   economies    which,    in    the    aggregate, 


amount  to  a  considerable  percentage.  For  instance, 
the  company  breeds,  raises,  and  breaks  all  of  the  work 
stock  for  its  own  use  and  some  for  market.  The 
company  maintains  a  machine  shop  of  considerable 
size  and  not  only  makes  all  necessary  repairs  to  its 
machinery  and  equipment  but  also  manufactures  new 
parts,  thus  effecting  the  saving  of  a  considerable 
item.  The  company  is  in  a  position  where  it  is 
making  a  very  liberal  return  on  a  valuation  ap- 
proximately double  the  price  at  which  it  disposed 
of  its  other  holdings  to  colonists,  plus  the  cost  of 
development.  It  is  able,  when  it  desires,  to  dispose 
of  its  improved  holdings  to  demonstrate  its  earn- 
ing power  and  can  afford  to  be  liberal  in  the  terms  of 
payment  allowed  the  purchaser  because  of  the  cer- 
tain knowledge  that  the  property  is  fully  and  prop- 
erly developed  and  is  now  producing  at  a  rate  suf- 
ficient to  insure  the  success  of  purchasers  under  ordi- 
nary conditions.  As  a  matter  of  fact,  its  success  in 
intensive  farming  under  irrigation  on  a  large  scale 
has  been  so  great  that  it  is  not  now  offering,  and 
cannot  afford  to  sell,  any  of  its  irrigable  lands  at 
present  prices.  The  facts  regarding  this  company 
strikingly  illustrate  the  possibilities  of  this  method 
of  handling  large  projects. 

The  field  for  investment  in  this  line  is  tremen- 
dous and  the  profits  to  be  realized  by  the  project 
properly  handled  are  large  and  sure.  The  three  req- 
uisites to  certain  success  are  these : 

Proper  examination  prior  to  the  purchase  of  the 
land,  taking  into  consideration  soil,  climate,  water 
supply,  and  transportation  available. 

Intelligent  planning  of  crops  with  a  view  to  what 
is  best  suited  to  the  particular  soil  and  general  mar- 
ket conditions. 

Efficient  management,  insuring  a  maximum  out- 
put at  a  minimum  cost. 

Intensive  farming  on  a  large  scale  offers  a  most 
attractive  field  for  investment  and  its  possibilities 
loom  large  in  the  realm  of  big  business. 


Tractor  and  scarifier  working  in  an  orchard  to  help  the  rapid  gr 


OIL 


87 


THE  OIL  INDUSTRY  OF  CALIFORNIA. 
By  Frank  J.  Silsbee. 

The  beginning  of  the  twentieth  century  marked 
the  dawn  of  the  era  of  oil  power  in  industrial  and 
maritime  pursuits  the  world  over.  Before  its 
span  of  years  is  half  passed  there  will  have  been 
witnessed  the  most  phenomenal  revolution  in  all 
history  of  mechanical  engineering  through  the 
utilization  of  oil  as  a  source  of  energy  in  place  of 
coal  and  other  combustibles  used  for  steam-mak- 
ing and  other  power-production  purposes.  The 
development  of  the  internal  combustion  engine, 
capable  of  being  operated  with  crude  petroleum 
and  low-grade  distillates,  and  suited  to  the  re- 
quirements of  the  world's  work  on  land  and  sea, 
will  work  a  marvelous  change  in  engineering 
standards.  No  mechanical  achievement  has  made 
such  rapid  strides  and  none  has  been  more  revo- 
lutionary in  effect.  Oil  power  is  in  the  ascend- 
ency. 

The  petroleum  industry  of  California  is  of 
great  importance  to  the  industrial  and  commer- 
cial pursuits  of  the  Pacific  coast,  on  account  of 
the  economic  change  in  production  and  trans- 
portation costs  being  brought  about  by  the  de- 
velopment of  oil  power.  The  oil  resources  of 
the  Golden  State  are  destined  to  have  a  world- 
wide influence  on  industry  and  commerce.  The 
economic  advantages  of  liquid  fuel  on  land  and 
sea  will  attract  the  manufacturer,  and,  with  the 
Panama  Canal,  influence  the  routing  of  the 
world's  shipping. 

Petroleum  is  the  natural  fuel  of  the  Pacific 
coast  states  of  North  and  South  America.  This 
territory  has  no  coal  deposits  of  particular  com- 
mercial importance.  Aside  from  deposits  in  Wash- 
ington and  British  Columbia,  and  the  undeveloped 
resources  of  Alaska  and  Peru,  there  is  no  satis- 
factory coal.  The  coal  that  is  produced  does  not 
compare  favorably  with  eastern,  Welsh,  or  Aus- 
tralian coals,  and  the  cost  is  considerably  higher. 
The  use  of  California  oil  is  therefore  universal  on 
all  railroads  in  the  state  and  its  consumption  ex- 
tends into  Arizona,  New  Mexico,  Nevada,  Oregon 
and  Washington,  British  Columbia  and  Alaska. 
In  short,  the  market  comprehends  a  territory 
from  Alaska  to  Chile  and  Hawaii,  and  inland  as 
far  east  as  Carlin,  Nevada,  El  Paso,  Texas  and  Al- 
buquerque, New  Mexico.  Almost  all  coastwise 
steamers  burn  oil,  and  when  the  economic  in- 
fluence of  liquid  fuel  with  the  internal  com- 
bustion engine  begins  to  be  felt,  the  use  of  oil 
will  extend  to  the  trans-oceanic  vessels. 

The  advantages  enjoyed  in  the  use  of  liquid 
fuel  in  stationary  plants  may  be  summed  up 
briefly  as  follows: 

1.  General  cleanliness. 

2.  High  boiler  and  furnace  efficiency. 

3.  Ability  to  carry  overloads  and  meet,  al- 
most instantly,  wide  ranges  in  load. 

4.  Total  absence  of  smoke  when  burners  are 
properly  handled. 

5.  Uniform  draft  and  air  supply,  giving  min- 
imum variation  in  furnace  temperature. 


6.  No  loss  when  stored  indefinitely. 

7.  Low  cost  of  handling. 

The  advantages  of  oil  being  burned  under  ma- 
rine boilers  instead  of  coal  are  enumerated  as 
follows : 

1.  Ability  to  raise  steam  quickly. 

2.  Rapid  bunkering  from  lighter  or  shore,  day 
or  night,  rain  or  shine,  with  no  dust  or  dirt. 

3.  Can  be  stored  in  double  bottoms  and  in 
other  spaces  on  board  ship  where  coal  could  not 
be  placed. 

4.  Practically  double  steaming  radius  for 
given  storage  space. 

5.  No  spontaneous  combustion;  decreased 
boiler  room  force;  hardships  of  stoking  re- 
moved; absence  of  dust  and  dirt  in  the  engine 
room  with  the  consequent  reduction  of  wear  on 
working  parts. 

6.  No  ashes  to  handle;  and  decreased  main- 
tenance cost  through  increased  life  of  boilers,  etc. 

For  railroad  purposes  the  use  of  liquid  fuel, 
aside  from  affording  many  of  the  benefits  given 
in  the  foregoing,  has  the  further  advantage  of 
the  absence  of  sparks,  thereby  eliminating  the 
danger  of  fires  along  rights-of-way.  In  certain 
forest  reserves  through  which  railroads  pass,  the 
government  requires  that  oil  be  burned,  to  reduce 
the  fire  hazard. 

For  metallurgical  purposes,  fuel  oil  gives  an  in- 
creased capacity  to  the  furnaces,  high  tempera- 
tures, absence  of  soot  in  dust  chambers,  ease  and 
range  of  regulation,  and  ability  to  reduce  "sows" 
quickly. 

The  average  price  for  which  good  steaming 
coal  can  be  delivered  into  bunkers  of  consumers 
in  Pacific  coast  territory  is  close  to  $8  per  ton. 
Records  of  the  Navy  Department  from  1906  to 
1910  indicate  that  the  average  price  the  federal 
government  paid  for  coal  for  its  war  vessels  on 
the  Pacific  was  $8.10  per  ton.  The  average  in 
the  Puget  Sound  country  was  $8.18  and  Mare 
Island  $8.47  per  ton.  It  will  therefore  be  seen 
that  $8  per  ton  is  a  fair  basis  of  coal  cost  in  com- 
parison with  liquid  fuel.  Exhaustive  tests  by  the 
United  States  government,  and  other  independent 
investigations,  indicate  that  from  three  to  three 
and  one-half  barrels  of  oil  fuel  are  equivalent 
to  one  ton  of  good  steaming  coal.  The  average 
price  which  the  consumer  of  California  fuel  oil 
has  had  to  pay  for  supplies  during  the  past  decade 
is  probably  less  than  $1  per  barrel;  for  the  pur- 
pose of  comparison,  however,  that  figure  will  be 
used.  On  the  basis  of  three  and  one-half  barrels 
of  oil  as  the  equivalent  of  one  ton  of  good  steam- 
ing coal,  the  per-coal-ton-cost  of  oil  figures  $3.50. 
The  saving  in  favor  of  oil,  therefore,  is  $4.50. 

To  illustrate  how  this  works  out,  take  the  case 
of  the  Southern  Pacific  railroad  system,  the 
greatest  single  beneficiary  of  oil  fuel.  It  uses 
approximately  a  million  and  a  quarter  barrels  per 
month.  The  cost  of  this  oil  to  the  railroad  is 
probably  close  to  75c  per  barrel,  or  $2.75  for  the 
combustible  equivalent  to  one  ton  of  coal.  If 
coal  were  used,  approximately  357,143  tons 
would  be  required  to  do  the  work  done  by  oil. 
At  $8  per  ton  this  coal  would  cost  $2,857,144. 


88 


OIL 


Figuring  oil  at  75c  per  barrel,  the  cost  for  fuel 
would  be  $937,500,  representing  a  saving  of  $1,- 
919,644  per  month,  or  approximately,  $24,000,- 
000  a  year.  It  might  be  well  to  point  out, 
at  this  juncture,  the  economy  of  oil  trans- 
portation on  railroads.  Fuel  oil  equivalent  to 
one  ton  of  coal  weighs  1,139  pounds.  One  of 
the  ordinary  tank  cars  in  use  on  the  railroads  will 
hold  297  barrels  of  oil,  which  is  equal  to  85  tons 
of  coal.  It  is  thus  seen  that  two  forty-ton  coal 
cars  would  be  required  to  transport  the  fuel 
equivalent  of  one  tank  car  of  oil.  The  saving  in 
equipment  and  transportation  costs  is  readily  ap- 
parent. 

A  gas  company  in  Los  Angeles  uses  approxi- 
mately 60,000  barrels  of  oil  fuel  per  month.  As- 
sume that  the  average  cost  per  barrel  is  $1, 
though  in  fact,  this  company  has  long  bought 
fuel  below  75c  per  barrel.  The  total  monthly 
bill  for  oil  fuel  would  therefore  be  $60,000.  Sixty 
thousand  barrels  of  oil  is  equivalent  to  17,143 
tons  of  coal,  which  figured  at  $8  per  ton,  would 
require  an  outlay  of  $137,144,  compared  to 
$60,000  for  oil;  a  monthly  saving  of  $77,- 
144.  Thus  the  comparisons  may  be  brought 
down  to  the  smallest  consumer,  whose  saving  is 
proportionate  to  the  amount  of  oil  used.  It  can 
readily  be  seen  what  a  boon  oil  fuel  is  to  the  small 
user,  particularly  on  account  of  its  ease  in  han- 
dling, storage,  etc. 

Interesting  and  remarkable  as  these  facts  are 
in  connection  with  the  use  of  oil  as  fuel,  they  sink 
into  comparative  insignificance,  in  the  light  of 
the  economies  of  the  heavy  oil  internal  combus- 
tion engine  for  land  or  sea  power.  Burning  oil 
under  boilers  must  be  characterized  as  criminally 
wasteful  when  compared  to  the  new  engine. 

A  description  of  this  engine,  which  is  commonly 
referred  to  as  the  Diesel,  taken  from  a  paper  pre- 
pared in  1912  by  Rudolph  Diesel,  the  inventor,  is 
as  follows: 

"The  Diesel  engine  suffers  neither  ignition  nor 
carburetion  troubles  for  the  same  reason  that  a 
snake  is  not  troubled  with  gout.  The  oil  engine 
does  not  depend  on  any  sparking  device,  as  does 
the  gasoline  engine,  nor  any  red-hot  ball,  as  does 
the  kerosene  engine.  The  Diesel  compresses  pure 
air  into  its  cylinders,  not  an  explosive  mixture 
of  gas  and  air.  The  air  is  compressed  to  a  de- 
gree which  raises  its  temperature  far  above  the 
burning  point  of  oil.  Pre-ignition  would  occur, 
as  in  gasoline  engines,  were  it  not  for  the  fact  that 
there  is  nothing  to  ignite  until  the  piston  has  fin- 
ished its  upward  stroke  and  is  ready  to  descend. 

Just  at  this  instant  a  tiny  spurt  of  oil  is  injected 
into  the  hot  compressed  air,  where  it  ignites.  The 
result  is  what  the  average  person  would  call  an 
explosion.  In  reality  it  is  not  an  explosion  such 
as  occurs  in  the  gasoline  engine,  where  a  mix- 
ture of  gas  and  oil  is  fired.  The  burning  of  the 
oil  occupies  almost  the  whole  time  during  which 
the  piston  is  descending.  The  result  is  a  steady 
push  like  steam,  instead  of  the  violent  blow  of  a 
gas  explosion." 

The  United  States  Bureau  of  Mines,  in  Tech- 
nical Paper  No.  37,  has  published  some  interest- 


ing facts  in  connection  with  some  of  the  advan- 
tages of  the  internal  combustion  engine  over 
steam  and  other  prime  movers.  It  deals  partic- 
ularly with  the  engine  as  adapted  for  marine  pro- 
pulsion, showing  such  economies  and  efficiency 
in  its  use,  as  will  attract  the  attention  of  the 
world's  merchant  marine.  Reduced  to  simple 
terms,  one  barrel  of  oil  used  in  the  marine  internal 
combustion  engine,  is  equivalent  to  three  or  four 
barrels  burned  under  a  boiler.  The  oil  engine  re- 
quires less  men  than  a  steam  engine  of  equal 
power.  It  is  cleaner,  and  much  easier  for  the  men 
to  handle.  No  fireroom  is  necessary.  No  stokers 
are  required  and  consequently  there  is  no  need  of 
quarters  for  them.  The  engine  dispenses  with 
boilers.  It  requires  no  smokestacks  —  only  a 
small  exhaust  stack — and  no  ventilating  fans  are 
needed  in  the  stokehold.  It  develops  no  smoke 
whatever.  When  the  engine  is  running  properly, 
no  exhaust  is  visible.  The  total  weight  of  the 
engine  is  about  the  same  as  that  of  a  reciprocat- 
ing steam  engine,  not  including  the  boilers  and 
condensers.  No  fresh  water  is  required;  salt 
water  can  be  used  for  cooling  the  cylinders.  The 
engine  room  is  thirty  to  fifty  per  cent  smaller 
than  that  of  the  steam  engine  of  equal  power  and 
more  easily  kept  clean  and  in  order.  The  thermal 
efficiency  of  the  internal  combustion  engine,  or 
heavy  oil  engine,  as  it  is  sometimes  called,  under 
full  load  is  thirty  per  cent,  compared  to  twelve 
per  cent  under  steam  units.  Such  engines  are  in 
use  in  many  types  of  vessels,  ranging  from  small 
pleasure  vessels  to  those  of  ten  to  twelve  thous- 
and tons  displacement,  and  larger  ones  are  con- 
stantly being  built. 

A  ship  of  this  type  visited  California  ports  re- 
cently. Comparing  two  vessels  of  equal  displace- 
ment, one  a  motor-ship  and  the  other  a  steamer, 
it  is  stated  that  the  motor-ship  will  carry  10,000 
tons  of  pay  freight  as  against  8,000  tons  by  the 
steamer,  at  50  per  cent  of  the  fuel  cost  per  ton  car- 
ried and  with  a  ship's  crew  of  half  the  size.  The 
motor-ship  can  travel  one  and  one-quarter  times 
the  circumference  of  the  globe  without  replen- 
ishing fuel  tanks,  whereas  a  steamer  could  go 
no  more  than  a  quarter  of  the  distance  without 
coaling.  Marine  engineers  state  that,  even 
though  the  first  motor-ships  built  have  cost 
more  than  steamers,  there  is  no  real  reason 
why  the  new  type  of  sea  transport  should  not 
ultimately  be  built  and  fully  equipped  for  nearly 
the  same  price  per  ton  as  a  high  grade  quadruple- 
expansion-engined  steamship,  provided  the  size 
is  at  least  10,000  tons.  Even  though  the  original 
cost  of  the  motor-ship  exceeds  that  of  the  steam- 
er, its  rate  of  interest  return  is  higher  on  account 
of  greater  earning  capacity  and  smaller  operating 
cost. 

The  petroleum  fields,  so  far  discovered  in  Cali- 
fornia, are  vast  in  area  and  remarkable  in  output, 
approximating  over  150  square  miles  of  proven 
ground,  and  with  a  potential  production  for  1914 
of  approximately  112,000,000  barrels.  The  United 
States  Geological  Survey  estimates  that  the  Cal- 
ifornia fields  are  capable  of  furnishing  a  maxi- 
mum of  eight  billion  barrels  of  crude  petroleum 


OIL 


89 


out  of  twenty-four  billion  barrels  maximum  yet 
available  in  the  United  States.  It  is  fair  to  state, 
however,  that  since  this  estimate  was  made  by 
the  government  agents,  additional  resources  have 
been  discovered  in  Oklahoma,  which  no  doubt  will 
raise  considerably  the  estimate  as  to  the  ultimate 
extractable  oil  content  of  this  country.  The  min- 
imum estimates  are  about  fifty  per  cent  of  the 
maximum  in  each  case.  Whether  or  not  the  max- 
imum is  reached  seems  immaterial  at  this  time. 
Competent  petroleum  engineers  and  geologists, 
on  independent  investigation,  state  that  it  is  rea- 
sonable to  believe  that  the  oil  fuel  of  California 
will  dominate  the  Pacific  coast  for  the  next  fifty 
years,  and  possibly  the  balance  of  the  present 
century. 

The  importance  of  the  California  petroleum  re- 
sources as  compared  to  the  rest  of  the  United 


duction  purposes,  for  years  to  come.  According 
to  figures  published  in  United  States  Geological 
Survey  Bulletin  No.  442-A,  of  the  year  1910,  the 
cost  of  delivering  Alaskan  anthracite  and  bitum- 
inous coal  to  Washington  and  Oregon  ports  will 
approximate  $5  per  ton,  and  to  California  ports 
50c  per  ton  additional.  By  the  time  the  nec- 
essary arrangements  are  made  to  mine  and 
transport  this  coal,  it  is  possible  that  progress 
in  the  development  of  the  internal  combustion 
engine  will  have  been  so  great  that  the  Alaskan 
product  will  not  threaten  the  supremacy  of  liquid 
fuel  for  some  time  to  come.  Furthermore,  the 
growth  in  ideals  of  the  conservation  of  our  nat- 
ural resources  will  ultimately  forbid  the  use  of 
our  bituminous  coals  under  boilers,  just 
as  this  sentiment  must  eventually  force  a  'dis- 
continuance of  the  wasteful  burning  of  petroleum 


OIL  FIELD  NEAR 

States,  and  the  production  of  foreign  countries 
is  set  forth  in  statistical  data  accompanying  this 
article.  These  statistics  show  that  in  the  year 
1901  California  produced  eleven  per  cent  of  the 
total  output  of  the  United  States,  the  proportion 
growing  steadily  until  the  year  1913,  when,  ac- 
cording to  the  United  States  Geological  Survey, 
the  Golden  State  produced  nearly  forty  per  cent 
of  the  total  petroleum  yield  of  this  country.  The 
production  of  all  foreign  countries,  as  compared 
to  California,  shows  that  of  the  whole,  Cali- 
fornia's output  amounted  to  a  little  over  seven 
per  cent  in  the  year  1901,  mounting  upward  to 
forty  per  cent  in  1912. 

The  development  of  Alaskan  coal  resources 
will  not  affect  the  practical  predominance  of  Cal- 
ifornia oil  for  steam-making,  and  other  power  pro- 


LOS  ANGELES. 

in  a  like  manner.  The  factor  of  conservation 
along  this  line  will  certainly  play  an  important 
part  in  determining  the  length  of  time  that  oil 
maintains  supremacy  as  a  fuel,  and  this  point  is 
taken  cognizance  of,  in  estimating  the  years  that 
liquid  fuel  will  probably  predominate.  When  the 
oil  resources  are  exhausted,  the  country  will  turn 
to  the  development  of  its  remarkable  shale  de- 
posits, and  coal  will  be  coked,  and  the  oil  residues, 
and  other  by-products,  turned  into  their  natural 
industries,  instead  of  going  up  the  chimney  into 
the  air.  The  shale  deposits,  existing  in  conjunc- 
tion with  the  oil  fields  of  the  state,  and  the  coal 
measures  of  Utah,  Wyoming  and  other  western 
states,  should  yield  enough  oil  to  guarantee  prac- 
tically an  unlimited  supply  for  the  future,  par- 
ticularly when  it  is  considered  that  by  virtue  of 


90 


OIL 


the  internal  combustion  engine,  a  price  can  be 
paid  for  oil  that  will  make  the  mining  of  these 
shales  profitable. 

It  is  to  be  regretted  that  so  much  information 
has  been  peddled  to  the  public  heralding  the  oil 
business  as  the  long-sought  way  to  "get  rich 
quick."  It  has  done  inestimable  damage  to  the 
industry  and  its  legitimate  promoters.  The  pub- 
lic mind  has  been  educated  to  believe  that  the 
earnings  of  such  corporations  as  the  Standard 
Oil  Company  are  general  in  the  petroleum  in- 
dustry. This  is  far  from  true.  The  Stand- 
ard Oil  Company  is  principally  a  purchaser,  trans- 
porter, and  refiner  of  crude  petroleum.  The  bus- 
iness of  producing  oil  is  totally  different.  The 
history  of  the  oil  business  of  California  shows 
that  the  producer  of  oil,  under  a  competitive 
economic  system,  influenced  by  considerations  of 
competition,  and  the  diplomacy  of  rivalry  among 
the  marketing  factors,  in  conjunction  with  the 
law  of  supply  and  demand,  can  hardly  expect  sta- 
ble profits  from  year  to  year  in  an  oil  region  of 
tremendous  potentialities. 

The  writer  is  not  decrying  investment  in  Cal- 
ifornia oil  properties.  It  is  well  to  point  out,  how- 
ever, that  the  average  price  per  barrel,  at  the 
well,  for  California  crude  oil  during  the  past  four- 
teen years  has  been  forty-five  cents.  Competent 
petroleum  engineers  estimate  that  the  actual  cost 
of  producing  oil  in  California,  taking  into  ac- 
count depreciation  of  the  producing  capabilities 
of  the  land,  redemption  of  capital,  and  develop- 
ment and  operating  expense,  is  not  far  from  that 
figure.  Indeed  the  statement  is  made  that,  con- 
sidering the  hazardous  and  speculative  nature  of 
the  business,  seventy-five  cents  per  barrel  should 
be  the  minimum  price,  at  the  well,  to  insure  profit. 
In  face  of  a  market  with  very  fixed  and  definite 
limitations  and  production  potentialities  of  enor- 
mous proportions,  millions  of  barrels  of  Califor- 
nia oil  are  now  being  marketed  annually  at  a 
price  below  the  cost  of  production.  It  is 
certain  that,  for  many  years  to  come,  California 
can  produce  millions  of  barrels  more  oil  than  can 
be  profitably  marketed.  Under  the  unrestricted 
operation  of  the  law  of  supply  and  demand,  ad- 
vance in  price  to  the  producer  only  serves  to  stim- 
ulate production  until  returns  to  the  producer 
again  fall  back  to  an  unprofitable  level.  It, 
logically  follows,  that  if  the  producer  is  to 
receive  a  profit  commensurate  with  the  risk  of 
the  business,  some  regulating  influence  must  be 
brought  into  play.  Some  means  must  be  adopted 
whereby  the  producer  will  receive  a  just  economic 
price  for  the  product,  at  the  same  time  taking  care 
of  the  marketer.  The  question  of  declaring  oil  a 
public  utility  to  meet  the  present  unprofitable  sit- 
uation is  occupying  the  attention  of  the  leaders  of 
the  industry.  It  is  proposed  that  thorough  regula- 
tion, from  producing  to  marketing,  be  instituted 
through  the  present  railroad  commission,  or  some 
other  legally  constituted  body.  The  idea  is 
permeating  the  consciousness  of  the  leaders  of 
the  state  that,  in  a  higher  way,  our  mineral  re- 
sources should  be  regarded  as  property  to  be 
used,  and  to  be  held  in  trust,  with  regard  to 


the  present  and  future  needs  of  the  country. 
It  is  being  realized  that  neither  human  labor 
nor  any  other  human  agency  has  contributed 
to  the  origin  of  oil.  Whatever  rights  the  individ- 
ual may  possess  have  been  derived  from  the  gen- 
eral government  and  from  the  state  as  the  origi- 
nal owners.  The  men  of  this  generation  must  not 
be  permitted  to  dissipate  a  great  state  asset  at 
continuous  financial  loss  to  themselves,  as  well  as 
to  future  generations.  There  can  be  no  such  thing 
as  an  oil  industry  without  profit,  and  when  this 
is  more  fully  and  concretely  realized  suitable 
regulation  will  come  about  to  the  interest  of  all 
concerned,  based  on  the  principles  of  conserva- 
tion of  natural  resources,  and  economic  fairness 
to  the  producer. 

Thus,  while  the  present  situation  from  an  in- 
vestment point  of  view  is  not  encouraging,  the 
future  is  bright.  Well  managed  and  amply 
financed  companies,  with  reasonably  large  acre- 
age, offer  attractive  speculative  and  investment 
possibilities,  if  judicious  selection  is  exercised. 
California  properties  are  rapidly  going  into  cen- 
tralized control.  The  small  operator  is  at  a  hope- 
less disadvantage  from  a  marketing  standpoint. 
The  capitalist  finds  his  opportunity  in  consolida- 
tion, which  reduces  the  cost  of  production. 
Centralization  in  California  has  progressed  to  the 
point  where  65  per  cent  of  the  output  of  the  state 
is  controlled  outright  by  the  marketers  and  con- 
sumers, leaving  35  per  cent  to  be  purchased  in 
the  open  market.  Amalgamation  of  producing 
properties  will  assist  materially  the  operation  of 
measures  of  regulation  and  work  for  the  best 
interest  of  producer  and  consumer.  But  the  great 
story  of  California  oil  lies  in  the  statistics  accom- 
panying this  article. 


ESTIMATE      OP      CALIFORNIA'S      PROVEN      PETROLEUM 

LANDS   AND    REMAINING    RECOVERABLE 

OIL  CONTENT 


Counties 


Fresno    

Kern   

Los  Angeles   . 

Orange    

Santa  Barbara 

Ventura    

San  Luis  Obispo 
Santa  Clara 

TOTAL 


Estimated 

Proven  Oil 

Acreage 

30,000 

53,000 


17,000 


Estimated     Production 
Recoverable  to 

Oil  Content  Jany.  1,  1915 


1.150,000,000 
2,375,000,000 


775,000,000 


154,843,000 
397,156,645 


192,737,000 


million       4,300,000,000      744,736,645  3,555,263,355 


Estimated" 
Remaining 
Recoverable 
Oil  Content 

995,157,000 
1,977,843,355 


582,263,000 


NOTE. — Estimates  of  additional  probable  oil  lands  range 
from  250,000  to  544,000  acres,  the  greater  part  of  which,  if 
proven  at  all,  being  considered  as  of  low  productivity  per 
acre. 

PRODUCTION    IN    CALIFORNIA    AS    COMPARED    TO    ALL 

FOREIGN  COUNTRIES  PREPARED   FROM   RECORDS 

OF     UNITED     STATES     GEOLOGICAL     SURVEY 

Foreign  California's 

Year  California  Countries  Total        Percentage 

1901  7,710,315       96,384,167  104,094,482  7.4% 

1902.    .  '"     13.984,268        96,391,106  110,375,374  12.7 

1903 "     24,382,472       94,742,174  119,124,646  20.5 

1904 29,649,434  102,170,629  131,820,063  22.5 

1905 33,427,473        80,928,598  114,356,071  29.2 

FIVE  YEARS.  109,153,962      470,616.674     579,770,636  18.8% 

1906  33,098,598  86,899,474  119,998,072  27  6% 

190?""  ""."  39,748.375  96,533,286  136,281,661  292 

1908        44,854,737  105,041,543  149,896,280  299 

1909 55,471,601  115,155,199  170,626,800  325 

1910 73,010,560  117,917,056  190,927,616  38.2 

FIVE  YEARS.  246,183,871      521,546,558     767,730,429         32.1% 

1911 81,134,391  125,062.794     206,197,185  39.4% 

1912        86.450,767  129,065,018     215,515,785  40.1 

1913 97.764,525  

1914 105,000,000  

NOTE. — While  complete  figures  are  not  available,  pro- 
duction in  foreign    countries  will   probably   show   a   decline   in 

1913  and  1914. 


OIL 


91 


PRODUCTION    AND    VALUE    OF    PETROLEUM    IN    CALIFORNIA 
FROM   1876   TO   1914   PREPARED    FROM   RECORDS   OF   U.   S.    GEOLOGICAL    SURVEY 


Year. 

r 

Barrels 
Production 
12,000 

-Production— 
Per  Cent 
Gained 

'V.3% 
17.1 
30.4 
104.2 

Total  Yield 

Series  Years 

12.000 

25,000 

40,227 

f.lMlV, 

100,637 

100,637 
200,499 
329.135 
471.992 
733.992 
1,058,992 

Years 

1  ... 

2  ... 

3  ... 

4  ... 

5  .. 

6  ... 

7  .. 

8  .. 

9  ... 

10  .. 

11  .. 

12  .. 

13  .. 

14  .. 

15  .. 

16  .. 

17  .. 

18  .. 

19  .. 

20  .. 

21  .. 

22  .. 

23  .. 

24  .. 

25  .. 

26  .. 

27  .. 

28  .. 

29  .. 

30  .. 

31  .  . 

32  .. 

33  .. 

34  .. 

35  .. 

36  .. 

37  .. 

38  .. 

39  .. 

iction   o 
In,    indi 
>r  1914, 

$ 
$ 

I 
I 

I 

s 

* 

5 

Yearly 

Value 
36.000 
39.000 
45,681 
59.574 
121,656 

301,911 
199,724 
257,272 
285,714 
524,000 
650,000 

1,916,710 

754,290 

1,357,144 

1,380,666 

368,048 

384,200 

4,244,348 

401,264 

561,333 

608,092 

1,064.521 

1,000,235 

3,635,445 
1,180,793 
1,918,269 
2,376,420 
2,660,793 
4,152,928 

Per  Cent 
Gained 

"8.3% 
17.1 
30.4 
104.2 

-Value 

Average 
Per 
Barrel 
$3.00 
3.00 
3.00 
3.00 
3.00 

Total  Value 

Series  Years 

$           36,000 

75.000 

120,681 

180.255 

301,911 

$         301,911 

$         501.635 

758,907 

1,044,621 

1,568.621 

2,218,621 

■  *\ 

Per 
Barrel 

1877    

1878    

1879    

1880    

13.000 

15.227 

19.858 

40,552 

100,637 

99,862 

$3.66 

FIVE  YEARS 

146.3% 
28.8 
11.1 
83.4 
24.0 

6.4% 
28.8 
11.1 
83.4 
24.0 

$3.00 
$2.00 
2.00 
2.00 
2.00 
2.00 

128,636 

142,857 

262,000 

325,000 

$2.09 

FIVE  YEARS 

958,355 

377,145 

852.3% 

16.0% 

80.0 

1.7 

•56.0 

0.1 

534.8% 

16.0% 

80.0 

1.7 

•81.5 

4.3 

$2.00 
$2.00 
2.00 
2.00 
1.21 
1.25 

1,436,137 
2,114,709 
2,805,042 
3,108,262 
3,415,622 

$      2.972.911 
4,330,055 
5,710,721 
6,078,769 
6,462,969 

678,572 

690.333 

303.220 

307,360 

$1.89 

FIVE  YEARS 

2,356,630 

323,600 

145.9% 
-,.■!■, 
18.7 
22.1 
66.5 
Bf.O 

121.4% 
4.4% 

39.9 
8.3 

74.9 

'6.0 

$1.S0 

$1.24 

1.46 

1.29 

1.36 

.80 

3,739,222 
4,124,271 
4,594,450 
5,377,528 
6,622,867 

$     6,864,233 

7,425.566 

8,033.658 

9,098,179 

10,098,414 

385.049 

470,179 

783,078 

1,245,339 

$1.52 

3,207,245 

1,257,780 

1,911,569 

FIVE  YEARS 

1896    

36.1% 
0.9% 
51.9 
17.6 
19.0 
61.7 

14.3% 

18.0% 

62.4 

23.9 

11.9 

56.1 

$1.13 

$0.94 

1.00 

1.06 

.99 

.96 

7,880.647 

9,792,216 

12,041.304 

14,719,179 

19,049,129 

$   11,279,207 
13,197,476 
15,573,896 
18,234,689 
22,387,617 

.... 

2,249,088 

2,677,875 

.... 

4,329,950 

$1.17 

FIVE  YEARS 

12,426,262 

7,710,315 

287.4% 
78.0% 
59.1 
74.3 
21.6 
12.7 

S   12,289,203 
$     2,961,102 
4,873,617 
7,399.349 
8,265,434 
8,201,846 

$   31,701,348 
$      9,553,430 
14,699,956 
.      23.433,502 
.      30,756,713 
.      35,749,473 

{114,193,074 
.$    38.719,080 
.      39.213,588 
.      45,661.400 
.      47,250,000 
L,oss. 

f  approximate 
eating    a    pote 
figured  at  the 

238.0% 
28.7% 
64.5 
51.8 
11.7 
0.7 

$0.99 
$0.38 
.35 
.30 
.28 
.25 

26,759,444 
40,743,712 
65,126.184 
94,775,618 
128,203,091 

$   25,348,719 
30,222,336 
37,621.685 
45,887.119 
54,088.965 

13,984,268 

.... 

1903    

1904    

1905    

24,382,472 

29,649,434 

33,427.473 

109,153,962 

33.098,598 

$0.42 

FIVE  YEARS 

778.4% 
•0.9% 
20.1 
12.8 
23.6 
31.6 

157.9% 
16.5% 
53.8 
59.4 
31.2 
16.2 

$0.29 
$0.29 
.37 
.52 
.55 
.49 

161,301,689 
201,050,064 
245,904.801 
301.376,402 
374,386,962 

$  63.642.395 

78,342.351 

101.775,853 

132,532.566 

168,282,039 

39.748,375 

1908      

44,854.737 

55.471,601 

73,010,560 

$0.45 

81,134.391 

FIVE  YEARS 

125.5% 

11.1% 

6.6 
13.1 

7.4 

estimated  bs 
000,000   barre 
nately  112,00 

260.2%          $0.46 
8.3%          $0.48 

1.3  .45 
16.4                   .47 

3.4  .45 

ly    53,000,000   barrels 
ntial    production    str 
same  rate  of  output 

455,521,353 
541,972.120 
639,736,645 
744,736,645 

sed  on  a  prodi 
Is   were    shut 
0,000  barrels  f< 

$207,001,119 
246,214,707 
291,876,107 
339,126,107 

for  the  first 
ength    of    56,0 

1912               .... 

86,450,767 

97.764.525 

1914    105,000,000 

•Loss. 

NOTE. — Figures  for  1914  are 
the   year.      In    that    period    fully    3. 
rels  for  the  six  months,  or  approxii 

$0.45 

half  of 
00    bar- 

PRODUCTION  AND   VALUE   OP   PETROLEUM  IN   THE    U.   S.    FROM  1876  TO  1913 

INDICATING    CALIFORNIA    IN    COMPARISON    TO    THE    WHOLE 

PREPARED    FROM    RECORDS    OF    UNITED    STATES    GEOLOGICAL    SURVEY 


-Production- 


Year 

1876    

1877    

1878    

1879    

1880    

FIVE  YEARS. 

1881     

1882    

1883    

1884    

1885    

FIVE  YEARS. 

1886    

1887    

1888    

1889    

1890    

FIVE  YEARS. 

1891    

1892    

1893    

1894    

1895    

FIVE   YEARS. 

1896    

1897    

1898    

1899    

1900    

FIVE   YEARS. 

1901     

1902    

1903    

1904    

1905    

FIVE   YEARS. 

1906    

1907    

1908    

1909    

1910    

FIVE   YEARS 

1911     

1912    

1913 

1914    


California 

12,000 
13,000 
15,227 
19,858 
40,552 

100,637 
99.862 
128.636 
142,857 
262,000 
325.000 

958,355 
377,145 
67S.572 
690,333 
303,220 
307,360 

2.356.630 
323.600 
385,049 
470,179 
783,078 

1,245,339 

3,207,245 
1,257,780 
1,911.569 
2,249,088 
2.677,875 
4,329,950 

12,426,262 
7.710,315 
13,984.268 
24,382,472 
29.649.434 
33.427,473 


246,183,871 
81,134.391 
86,450.767 
97.764.525 


15  Other 
States 
9.120,669 
13,337,363 
15,381,641 
19,894,288 
26,245,571 

83,979,532 
27,561,376 
30,221.261 
23.306.776 
23.956.438 
21.533,785 

126,579,636 
27,687,696 
27,604,911 
26,921,692 
34.860.293 
45.516,212 

162,590,804 
53.969.055 
50.129.608 
47,960.887 
48,561.438 
51,646.937 

252,267,925 
59.702.581 
58,563.947 
53,115,145 
54,392.975 
59,290.579 

285,065.227 
61,678,879 
74,782.648 
76.078,865 
87,431.526 

101,290.107 

401.262,025 
93.395.338 
126.346,960 
m,<72.61l 
127.699.273 
136.546.688 

617,660,877 
139.315.000 
135.662,451 
150.681.705 


Califs 
Total        Per  Cent 
9,132,669         

13,350,363         

15,396,868         

19,914.146         

26,286,123         


-Value- 


Year 
1876 
1877 
1878 
1879 
1X80 


California 
\  36.000 

:!n. linn 

45.681 

59,574 

121,656 


105,000,000  Estimated. 


84,080,169 
27,661,238 
30.349,897 
23,449,633 
24.218.438 
21,858,785 

127,537,991 
28,064,841 
28,283,483 
27,612,025 
35.163.513 
45,823,572 

164,947,434 
54.292,655 
50,514,657 
48,431.066 
49.344.516 
52,892,276 

255,475,170 
60,960.361 
60.475,516 
55,364.233 
57.070.850 
63,620,529 

297,491,489 
69,389.194 
88,766.916 
100.461.337 
117.080.960 
134,717,580 

510,415.987 
126.493,936 
166.095.335 
178.527.355 
183,170.874 
209.557,248 

863.844.748 
220.449.391 
222,113.218 
248.446,230 


1.3% 

2.4 

2.5 

0.9 

0.7 

1.4% 

0.6% 

0.8 

1.0 

1.6 

2.4 

1.2% 

2.1% 

3.2 

4.1 

4.7 

6.8 

4.2% 

11.1% 

15.8 

24.3 

25.3 

24.8 

21.4% 

26.2% 

23.9 

25.1 

30.3 

34.8 

28.5% 
36.8% 
38.9 
39.4 


FIVE    YEARS.$ 

1881    $ 

1882    

1883    

1884    

1885    


301,911 
199.724 
257,272 
285,714 
524.000 
650,000 


FIVE   YEARS.$ 

1886    $ 

1887     

1888    

1889    

1890    

FIVE    YEARS.$ 

1891    $ 

1892  

1893  

1894  

1895  


1,916,710 

754,290 

1,357.144 

1,380,666 

868,048 

384,200 

4,244,348 

401,264 

561.333 

608,092 

1,064,521 

1,000,235 


15  Other 
States 
$  22,946,822 
31,749,566 
17,998,839 
17,151,134 
24,478,982 

$114,325,343 
$  23,312,327 
23,373,893 
25,454.538 
19,952,924 
18,543,694 

$110,637,376 
$  19,274,167 
17,499,462 
16,569,687 
26,595,292 
34,980,905 

$114,919,513 
$  30,125.289 
25.345.130 
28,324.234 
34,457,574 
56.691,044 


Calif's 
Total        Per  Cent 

$   22,982.822  

31,788,566  

18,044,520  

17,210,708  

24,600,638  

$114,627,254  

$   23,512,051  0.9% 

23,631,165  1.1 

25,740,252  1.1 

20,476,924  2.6 

19,193.694  3.4 

$112,554,086  1.7% 

$   20,028,457  3.8% 

18,856.606  7.2 

17,950,353  8.1 

26,963,340  1.4 

35,365.105  1.1 


$119,163,861 
%  30,526,553 
25,906,463 
28,932,326 
35,522.095 
57,691.279 


FIVE    YEARS.$ 

1896    $ 

1897    

1898    

1899    

1900    


3,635.445 
1,180.793 
1,918.269 
2,376.420 
2.660,793 
4,152.928 


$174,943,271      $178,578,716 


FIVE    YEARS.$ 

1901     $ 

1902    

1903    

1904    

1905    


12,289,203 
2.961.102 
4,873,617 
7,399.349 
8.265.434 
8,201,846 


FIVE   YEARS.$  31,701,348 

1906  $  9,553.430 

1907  14,699.956 

1908  23,433.502 

1909  30,756.713 

1910  35.749,473 

FIVE    YEARS.$114.193,074 

1911  $  38.719.080 

1912  39.213,588 

1913  45,661,400 

1914    


57.337,916 
39,011,342 
41,816,939 
61,943,111 
71,599,763 

$271,709,071 
$  63.456.233 
66,305,293 
87.294,701 
92,910.021 
75.955,553 

$385,921,801 

$  82,891.305 

105,406.793 

105.645,682 

97,571.774 

92.150,215 

$483,665,769 

%  95,325,672 

124.588.746 

191,459,988 


58.518.709 
40,929.611 
44,193.359 
64.603.904 
75,752,691 

$283,998,274 

$  66,417.335 

71,178.910 

94.694.050 

101.175,455 

84,157,399 

$417,623,149 
$  92.444,735 
120.106,749 
129,079,184 
128,328.487 
127.899.688 

$597,858,843 

$134,044,752 

163.802,334 

237,121.388 


3.6% 

1.3% 

2.2 

2.1 

3.0 

1.7 

2.0% 

2.0% 

4.7 

5.4 

4.1 

5.5 

4.3% 

4.5% 

6.8 

7.8 

8.2 

9.8 

7.6% 
10.3% 
12.2 
18.1 
23.9 
27.9 

19.1% 
28.9% 
23.9 
19.3 


92 


SHIPPING 


A    BUSY    PIER    IX    SAX    FRAXCISCO. 


THE  SHIPPING  INDUSTRY  OF  THE  PACIFIC 

COAST. 

By  Capt.  Robert  Dollar. 

This  industry  is  second  to  none  in  importance 
in  the  Pacific  Coast  States.  It  is  difficult  to  get 
at  the  exact  tonnage  owned,  as,  on  account  of  the 
high  taxes  imposed,  many  coastwise  vessels  are 
registered  in  Minnesota,  Maine,  New  York  and 
New  Jersey;  and,  on  account  of  our  unjust  and 
unreasonable  laws,  a  great  many  large  cargo 
steamers,  owned  by  citizens  of  the  Pacific  Coast 
States,  are  registered  in  foreign  countries,  fly 
their  flags,  and  are  principally  engaged  in  foreign 
commerce  to  and  from  this  coast.  The  approx- 
imate tonnage  of  vessels  is  1,049,296  gross  reg- 
istered tons.  The  money  value  also  can  only  be 
approximated;  it  is  estimated  at  sixty  million 
dollars. 

The  vessels  engaged  in  the  domestic  trade  are 
more  than  sufficient  for  present  requirements. 
At  this  writing  some  thirty  steamers  are  laid  up, 
bo  I  think  the  increase  will  be  gradual  and  will 
only  come  as  trade  conditions  warrant.  In  the 
Foreign  Trade,  we  look  for  very  great  advance- 
ment and  development.  This  will  be  brought 
about  by  the  great  increase  of  trade  that  we  will 
get  from  the  opening  up  and  development  of 
China.  Thirty-five  years  ago  the  Pacific  Mail 
was  the  only  company  operating  steamers,  and 
the  combined  cargo  capacity,  of  all  their  steam- 
ers at  that  time,  was  not  as  great  as  is  that  of 
one  of  their  large,  modern  steamers.  If  the  in- 
crease keeps  up  at  the  same  rate  as  during  that 
period,  long  before  this  century  closes,  the  cen- 
ter of  the  world's  commercial  activity  will  be 
transferred  from  the  Atlantic  to  the  Pacific. 

It  is  generally  supposed  that  the  opening  of  the 
canal  will  take  away  a  great  deal  of  freight  from 
our  ports,  but  from  the  line  of  the  great  northern 
circle  from  Panama  to  Japan,  San  Diego  is  only 
225  miles,  Los  Angeles  245,  San  Francisco  325, 
Eureka  430,  Astoria  670,  the  entrance  to  the 
Straits  of  Juan  de  Fuca  800;  so  it  will  be  seen 
that  the  deviation  will  be  very  slight. 

The  Pacific  Coast  is  favored  with  many  good 


1  and  commodious  harbours.  In  the  extreme 
South  is  San  Diego,  having  ample  accommoda- 
tions for  all  the  requirements;  next  Los  An- 
geles with  more  than  they  require  and  by  dredg- 
ing they  can  extend  indefinitely;  then  San 
Francisco  with  sufficient  anchorage  for  all  the 
navies  of  the  world.  Eureka  has  plenty  of  room 
for  her  rapidly  growing  trade.  In  Oregon  is 
Coos  Bay.  As  soon  as  contemplated  improve- 
ments are  completed,  the  largest  tramp  steam- 
ers afloat  can  find  berth  there.  Next  comes 
the  Columbia  River.  When  the  jetties  and  dredg- 
ing contemplated  are  completed,  it  can  re- 
ceive vessels  drawing  thirty  feet  of  water.  Wil- 
lapa  and  Grays  Harbor  are  rapidly  increasing 
their  facilities  to  receive  large  vessels.  At  pres- 
ent steamers  400  feet  long  and  drawing  20  feet 
have  no  trouble  going  in  and  out.  Puget  Sound, 
unsurpassed  for  its  land  locked  bays,  has  suf- 
ficient water  to  take  at  one  time  all  the  ships  of 
the  world.  Seattle  and  Tacoma  are  rapidly  build- 
ing wharves  to  accommodate  the  great  increase 
expected  after  the  Canal  is  in  operation. 

Our  shipping  may  be  divided  into  three  parts, 
first,  Coastwise,  second,  Inter-Coast,  (via  Pan- 
ama), and  third,  Foreign. 

The  bulk  of  the  coastwise  cargoes  carried  are 
from  north  to  south,  lumber  furnishing  more  than 
95%  of  the  whole.  Vessels  carry  bulk  cargoes 
north,  but  not  to  exceed  10%  of  their  capacity. 
The  steamers  engaged  in  carrying  lumber  on  this 
Coast  are  constructed  specially  for  this  trade 
and  are  entirely  different  than  can  be  seen  in  any 
other  part  of  the  world.  The  machinery  is  placed 
aft,  and  from  30%  to  50%  of  the  cargo  is  car- 
ried on  deck  and  with  perfect  safety  to  both  the 
vessel  and  cargo.  The  ordinary  height  of  those 
deckloads  are  from  12  to  18  feet. 

The  trade  that  will  go  from  one  seaboard  of 
the  United  States  to  the  other  is  problematical. 
The  value  of  commodities  carried  in  1913  was 
$80,026,517".  This  was  an  increase  from  1900  of 
$73,208,737,  although  handicapped  by  having  to 
trans-ship  by  rail  either  via  Tehantepec  or  Pana- 
ma. As  to  what  increase  the  opening  of  the 
Canal  will  effect  we  must  wait  trade  develop- 


SHIPPING 


93 


ment  for  a  year  or  two,  before  we  can  even 
make  any  calculations.  That  the  increase 
will  be  gradual,  we  are  sure,  although  some  ex- 
pect an  immediate  expansion.  In  this  they  will 
be  disappointed,  but  that  there  will  be  a  tre- 
mendous increase  of  this  trade,  admits  no  argu- 
ment. The  difference  between  rail  and  all 
water  rates  will  be  sufficient  to  warrant  this  pre- 
diction. For  the  opening  of  the  Canal  the  rate 
of  freight  has  been  reduced  about  30%. 

Foreign  trade  has  not  been  pushed  as  it  should. 
The  local  or  domestic  demand  has  satisfied  all 
producers,  therefore  there  was  little  incentive  to 
go  farther  afield  as  long  as  the  home  consump- 
tion kept  up.  Now  we  see  that  we  must  reach 
out  for  foreign  markets.  So  far  we  have  only 
exported  the  products  of  the  forest,  fields  and 
fisheries;  now  we  must  reach  out  for  manufac- 
turies.  Up  to  the  present  time  labor  conditions 
have  been  such  as  to  effectually  preclude  the 
possibility  of  manufacturing  on  this  coast  for 
export.  Now  we  feel  that,  with  the  opening  of 
the  canal,  a  great  number  of  emigrants  will  reach 
our  shores.  Employment  must  be  found  for  them 
either  in  the  cultivation  of  the  fields  or  in  manu- 
facturing as  very  few  will  have  money  enough  to 
take  up  land.  We  can  expect  factories  to  be 
built  because  raw  material  can  be  gotten  as  cheap 


as  in  any  part  of  the  United  States.  Iron  ore  of 
a  better  quality  can  be  laid  down  in  Pacific  Coast 
ports  at  a  lower  price  than  the  supply  is  de- 
livered at  Pittsburg.  Cokeing  coal  can  be  de- 
livered here  at  a  price  that  will  enable  us  to  pro- 
duce coke  at  competitive  prices  if  the  most  mod- 
ern by-product  ovens  are  employed.  Thus  there 
is  no  reason  why  we  cannot  produce  iron  and 
steel,  not  only  for  our  own  requirements,  but 
for  export  also.  Raw  cotton  and  wool  can  be  de- 
livered at  our  sea-board  as  cheap  as  anywhere  , 
else,  as  both  are  grown  near  by. 

The  opening  of  markets  of  China  warrants 
the  prediction  of  an  enormous  commerce  be- 
tween that  country  and  ours.  The  Philippine  trade 
that  has  increased  by  leaps  and  bounds  and,  if 
political  conditions  permit,  a  great  trade  will  re- 
sult. Japan,  India  and  the  East  Indies  will  all  in- 
crease their  trade  with  us.  The  custom  house  sta- 
tistics are  extremely  encouraging.  In  1856  our  to- 
tal exports  from  this  entire  coast  were  $3,460,448, 
in  1880  $38,888,418,  in  1913  $146,856,469.  If 
this  same  ratio  of  increase  continues  for  the  next 
60  years,  it  can  easily  be  seen  that  the  fulfillment 
of  my  prediction  will  be  accomplished,  that  the 
Atlantic  trade  will  be  superseded  by  the  Pacific, 
and  that  the  commerce  of  San  Francisco  will  ex- 
ceed that  of  New  York  of  today. 


A  VESSEL  ESPECIALLY  DESIGNED  FOR  TIMBER  CARRYIXG.     NOTE  THE  LEXGTII  OF  CLEAR 

HULL  AND  DECK   ROOM. 


94 


FISHERIES 


A   SALMON   CANNERY   IN  WASHINGTON   SHOWING   SOME   OP  THE  TRAPS. 


FISH   FACTS  AND  FIGURES. 


Commercial,  Financial  and  Economic  Features  of 
the  Pacific  Coast  Fisheries. 


By  Miller  Freeman.     Editor  of  "The  Pacific 
Fisherman." 

Food  is  the  prime  requisite  of  life  and  where, 
when  and  how  to  get  it,  how  to  pay  for  it,  and  how 
much,  constitute  the  vital  problem  of  the  race. 
The  traffic  in  food  is  the  biggest  item  in  the 
world's  commerce. 

Fish  are  food — nay  more,  they  are  cheap  food. 
As  such  they  are  surely  entitled  to  serious  con- 
sideration in  this  day  and  age.  Americans,  it  is 
true,  are  not,  broadly  speaking,  a  fish  eating  peo- 
ple and  it  is  in  America  that  the  High  Cost  of 
Living  holds  untrammelled  sway.  These  two  facts 
are  worth  weighing  in  their  relation  to  one  an- 
other. 

It  seems  strange  that  Americans — not  them- 
selves essentially  fish  consumers,  should  have  de- 
veloped, and  today  control,  what  is  probably  the 
world's  most  important  fishery.  It  has  sprung 
up  upon  the  Pacific  Coast  within  the  past  half 
century  and,  in  spite  of  the  important  position  it 
now  occupies  as  demonstrated  by  statistics,  it  is 
still  considered  in  its  infancy. 

So  rapid  has  been  the  development  of  the  com- 
mercial fisheries  of  the  West  Coast  that  few  peo- 
ple east  of  the  continental  backbone  have  even 
an  approximate  idea  of  their  present  size  and  im- 


portance. The  total  fisheries  products  of  the 
Pacific  Coast  were  worth,  last  year,  about  $60,- 
000,000  to  the  producer,  or  with  transportation 
and  distributing  costs  $100,000,000  to  the  con- 
sumer. 

One  reason  why,  perhaps,  so  little  is  understood 
about  the  Pacific  Fisheries  is  because  they  differ 
so  radically  from  those  of  the  Atlantic  coast,  upon 
which  most  casual  observers  formulate  their  opin- 
ions. On  the  east  coast  large  fishing  banks  are 
located  in  a  position  really  adjacent  to  large  con- 
suming centers  such  as  Boston,  New  York,  and 
Philadelphia,  with  the  result  that  most  of  the  fish 
is  handled  in  a  fresh  state.  The  Pacific  Coast  is 
comparatively  lightly  populated,  and  its  fishery 
products  must  find  their  chief  market  in  the  East- 
ern states  and  abroad.  Owing  to  the  fact  that 
these  fisheries  are  situated  so  far  from  the  con- 
suming centers,  the  bulk  of  the  product  must  be 
prepared,  with  the  result  that  here  we  have  not 
only  a  fishery  of  unparalleled  importance,  but  a 
large  and  thriving  manufacturing  business. 

Take,  for  instance,  the  example  of  the  salmon 
canning  industry,  the  product  of  which  comprises 
three-fourths  of  the  sixty  million  dollar  total.  Last 
year  this  industry  consumed,  in  raw  materials, 
575,000,000  pounds  of  fish;  30,000,000,000  square 
inches  of  tin  plate;  8,000,000  packing  cases;  60,- 
000,000  pounds  of  salt;  4,000,000  pounds  each  of 
pig  tin  and  pig  lead;  360,000,000  cement  coated 
nails;  400,000,000  lithographed  labels,  and  thou- 
sands of  gallons  of  gasolene,  kerosene,  lacquer 


B'ISHERIES 


95 


and  acids.  With  this  it  produced  some  four  hun- 
dred million  sealed  packages  of  nutritious,  pal- 
atable, and  economical  food. 

To  further  show  how  this  differs  from  the 
ordinary  conception  of  a  fishing  business,  it  might 
be  mentioned  that  these  fish  are,  in  the  main,  not 
caught  by  hook  and  line,  but  with  such  gear  as 
salmon  traps  and  purse  seines.  In  the  traps  the 
fish  are  kept  alive  in  the  water  until  ready  for 
packing,  and  are  not  touched  by  human  hands 
until  they  are  delivered  at  the  packing  establish- 
ment. 

The  fish  are  handled  with  large  power  vessels 
driven  by  gas  engines,  less  picturesque,  but  more 
practical  than  the  fishing  smacks  of  the  Atlantic. 


From  an  initial  pack  of  2,000  cases,  the  business 
grew  by  leaps  and  bounds,  the  output  of  1913 
being  8,000,000  cases  of  48  pounds  each.  This  in- 
dustry employs  over  30,000  people  and,  since  the 
entire  pack  if  made  in  a  few  months  in  the  sum- 
mer season,  an  enormous  equipment  is  required 
to  handle  it  successfully. 

Canned  salmon  now  fills  a  tremendous  domes- 
tic demand,  and  may  be  found  on  sale  in  every 
country  in  the  world.  Twenty-five  per  cent  of 
the  output  is  sold  abroad  and  it  is  the  largest  item 
of  canned  food  exported  by  the  United  States. 

The  fish  canning  activities  of  the  coast  are  by 
no  means  limited  to  salmon.  Within  the  past 
few  years,  there  has  sprung  up  the  practice  of 


SALMON  ON  THE  FLOOR  OF  THE  CANNERY. 


The  manufacture  of  engines  for  the  fishing  fleet 
is  in  itself  a  large  industry  on  the  Pacific  Coast. 

In  the  canneries,  modern  sanitary  machinery  is 
used  throughout  and  the  fish  are  even  butchered 
by  a  mechanical  device  known  as  the  "Iron 
Chink,"  which  performs  this  difficult  operation 
without  the  aid  of  a  human  hand. 

In  1913  this  branch  celebrated  its  fiftieth  anni- 
versary with  the  largest  output  in  its  history.  It 
was  founded  on  the  Sacramento  half  a  century 
ago  by  some  pioneers  experienced  in  the  lobster 
canneries  of  Maine.  Today  the  business  finds  its 
principal  seat  in  the  state  of  Washington,  and 
in  Alaska.  The  Columbia  River,  while  not  numer- 
ically a  big  factor,  will  always  continue  to  enjoy 
an  enviable  reputation  for  the  quality  of  its  fish. 


canning  a  species  of  tuna  found  on  the  coast  of 
California  and,  although  only  a  few  years  old,  this 
business  exceeds  a  million  dollars  a  year.  Besides 
this  there  are  canned  large  quantities  of  clams, 
crabs,  sardines,  etc. 

In  the  fresh  fisheries  the  halibut  is  of  para- 
mount importance.  As  this  fish  must  find  its 
principal  market  in  Eastern  States,  it  must  be 
shipped  packed  in  ice,  or  frozen.  This  has  neces- 
sitated the  construction,  at  various  points  along 
the  coast,  of  ice  making  plants  and  cold  storages. 
The  largest  fish  cold  storage  plant  in  the  world, 
is  now  located  at  the  Pacific  Coast  and  has  a  ca- 
pacity of  15,000,000  pounds.  The  halibut  fisheries 
alone  produce  about  60,000,000  pounds  of  fish  a 
year  and,  in  addition  to  this,  there  is  a  consider- 


96 


FISHERIES 


able  business  in  fresh  salmon,  herring,  and  various 
kinds  of  cod. 

The  salt  fish  business  is  also  an  important 
branch  of  the  industry.  This  group  includes,  as 
its  most  important  branch,  the  business  of  pack- 
ing large,  choice  salmon  in  light  brine,  and  ship- 
ping them  to  Germany  where  they  are  washed, 
smoked,  and  canned.  The  current  year's  business 
has  of  course  been  disorganized  by  the  war,  but 
last  year  some  20,000,000  salmon  were  pre- 
pared in  this  fashion.  The  general  salt  fish  busi- 
ness includes  the  packing  of  salmon  and  herring 
in  barrels,  and  salting  codfish  and  herring  in  bulk. 

The  manufacture  of  oil  and  fertilizer,  together 
with  miscellaneous  chemical  by-products  from 
whales,  cannery  offal  and  non-edible  fish,  is  also 
another  branch  of  the  fisheries  which  is  increas- 
ing in  importance  with  the  passing  of  years. 

It  is  very  fascinating  to  contemplate  the  fu- 
ture of  this  industry.  There  are  at  least  250  va- 
rieties of  edible  fish  on  the  Pacific  Coast,  of  which 
not  more  than  a  dozen  are  being  exploited  today, 
and  yet  these  dozen  have  elevated  the  fishery  to 
a  sixty  million  dollar  business.  The  finding  of  a 
market  for  California's  tuna,  which  was  unutil- 
ized up  to  a  few  years  ago,  is  only  one  example 
of  the  many  developments  which  years  are  sure 
to  bring.  In  this  instance,  we  have  a  case  of  a 
million  dollar  business  springing  up  in  a  twinkling 
from  a  fish  which  had  not  been  regarded  as 
edible,  and  southern  California  ports  are  the 
richer  by  a  score  of  fine  food  factories  employ- 
ing hundreds. 

The  raw  material — the  fish— is  to  be  found  in 
these  waters  in  inconceivable  quantities,  and 
growth  is,  at  present,  limited  only  by  the  mar- 
ket— by  the  amount  of  fish  that  can  be  packed 
and  sold  profitably.  With  the  extension  of  the 
markets  the  industry  will  logically  expand. 

All  eyes  are  at  present  turned  to  the  Panama 
Canal.  Its  economical  altering  of  trade  routes 
is  bound  to  have  a  beneficial  effect  upon  Pacific 


Fisheries,  and  it  may  be  said  that  readjustment 
in  accordance  with  the  changed  conditions  is  go- 
ing on  even  now.  Every  few  days,  large  cargoes 
of  canned  salmon — a  hundred  thousand  cases 
and  more — leave  the  Pacific  for  Atlantic  ports. 
These  goods  travel  under  a  water  rate  of  thirty 
cents  a  hundred  pounds,  compared  to  seventy 
cents  present  rail  rate.  As  the  chief  markets, 
not  only  for  canned  salmon  but  our  other  fisheries 
products,  lies  in  the  East  and  abroad,  the  cost  of 
getting  the  finished  product  to  consumers  is  go- 
ing to  be  reduced,  and  this  will  represent  a  sav- 
ing to  purchasers  which  is  bound  to  result  in  in- 
creased consumption. 

Direct  benefits  will  come  through  a  reduction 
in  the  cost  of  materials  and  equipment  to  the 
packers,  as  a  large  amount  of  these  goods  come 
from  the  east. 

The  canal  will  unquestionably  make  the  Pa- 
cific Fisheries  a  bigger  figure  in  the  export  trade 
than  ever  before.  A  general  movement,  origin- 
ated by  the  writer,  to  secure  a  reduction  in  for- 
eign duties  on  canned  salmon  is  beginning  to 
bear  fruit  and,  coincident  with  the  lower  cost 
of  getting  these  goods  to  foreign  ports,  this  opens 
up  new  and  rich  markets.  It  will  be  possible  to 
ship  cheap  frozen  fish  direct  to  Europe,  and  this 
branch  alone  will  unquestionably  receive  a  tre- 
mendous impetus  when  conditions  on  the  con- 
tinent have  adjusted  themselves,  as  they  even- 
tually must.  The  business  of  handling  low  priced 
salt  fish  in  barrels  and  bulk  will  also  expand,  as  a 
cheap  food  is  more  than  welcome  in  many  for- 
eign countries. 

Coupled  with  the  natural  growth  incident  to  the 
continued  extension  of  domestic  markets,  the 
opening  of  the  canal  marks  the  beginning  of  a 
new  era  in  the  Pacific  Fisheries.  The  fishing  in- 
dustry of  the  Pacific  Coast  is  an  industrial  bene- 
factor. The  money  received  for  its  products  flows 
into  a  hundred  trade  channels  and  is  an  important 
factor  in  the  general  prosperity  of  the  nation. 


FISHING  FLEET   OF  THE  ALASKA   PACKERS. 


THE  EXPOSITIONS 


98 


PANAMA  PACIFIC  INTERNATIONAL  EXPOSITION 


COMPLETE    SECTIONAL    PANORAMA    OF    EXPOSITION.      WEST    SECTION. 


llllUflllf 


THE  PALACE  OF  EDUCATION,  SHOWING  THE  WESTERN   ENTRANCE. 


These  photographs  copyright  1914  by  Pan.  Pac.  Int.  Expo.   Co.. 
SECTIONAL  PANORAMA  OF  EXPOSITION.     EAST  CENTRAL  SECTION. 


PANAMA  PACIFIC  INTERNATIONAL  EXPOSITION 


PALACE   OF    MANUFACTURES   FROM   THE    SOUTH   GARDENS. 


ft 

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""^^^^^^  "r^^""^" "^^^^^ ^^^^^^H     L  ^^*  *~i 

ltd                ^^HPOH 

77i«<?  photographs  copyright  1914  fry  Pan.  Pac.  Int.   Expo.  Co. 
SECTIONAL   PANORAMA  OF  THE   EXPOSITION.      EAST   SECTION. 


100 


THE  SAN  DIEGO  EXPOSITION 


The  Panama  California  Exposition  at  San  Diego 


There  is  now  in  progress  an  engrossing  experi- 
ment by  the  furthest  south  of  the  American  ports 
on  the  Pacific,  San  Diego, — an  experiment  which 
is  so  closely  bound  up  with  San  Diego's  Panama- 
California  Exposition  of  1915,  as  to  appear  partly 
as  a  cause,  partly  as  an  effect.  One  important 
point  is  that  it  demonstrates  a  new  idea  in  expo- 
sition work — a  serious  purpose  and  something  of 
genuine  economic  interest  rather  than  the  futile 
hope  of  an  ephemeral  "boom."  So  far  as  is  known 
this  is  unique.  Broadly,  this  purpose  is  to  build 
up  the  great  southwest  area  which  is  barely 
tapped  today.  No  less  interesting  is  the  method 
whereby  this  purpose  is  to  be  carried  out. 

San  Diego's  present  back  country  is  almost 
negligible.  Not  even  the  Imperial  Valley,  directly 
east  but  over  the  first  divide,  can  be  considered 
as  tributary  to  the  coast  city  under  present  traffic 
conditions.  To  grasp  the  idea  of  the  program 
there  must  be  a  general  understanding  of  geo- 
graphical conditions — San  Diego  the  first  port 
of  call  north  of  the  Canal,  nearer  to  the  new 
waterway  by  600  miles  than  is  San  Francisco, 


routes  became  identical.  Everything  west  and 
south  of  that  line,  then,  was  reserved  as  San 
Diego's  back  country,  inasmuch  as  every  point 
within  that  territory  could  obtain  its  goods  from 
the  east  more  cheaply  via  San  Diego  than  by 
any  other  way.  Similarly,  all  products  of  that 
country  could  be  shipped  to  the  Atlantic  ports 
more  cheaply  via  San  Diego  than  by  any  other 
way. 

The  territory  so  defined  includes  Southern  Cali- 
fornia, most  of  Nevada,  southern  Utah,  south- 
western Colorado,  all  of  New  Mexico  and  all  of 
Arizona.  Sections  which  are  different  in  latitude 
and  altitude  are  capable  of  producing  an  extra- 
ordinary variety  of  raw  materials.  The  statisti- 
cians tossed  aside  their  freight  rate  statistics  and 
set  about  finding  out  what  they  are. 

By  means  of  detail  maps  and  the  data  men- 
tioned, the  statisticians  prepared  their  reports 
on  each  of  the  counties  and  valleys  in  the  south- 
west, by  states.  Thus  in  southwest  Colorado 
were  17  counties,  in  southern  California  11 
counties,  in  Arizona  14  counties,  in  New  Mexico 


•Present   Routes  - 

o  c  o 

d  . 


Kates  given  in  car  load  quantities. 


Commodity. 


Shipping   Point. 


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1.  Carpets    

2.  Clothing    

3.  Dry  goods 

4.  Electrical  appliances  and  sup 

plies    

5.  Furniture    

6.  Hardware    

7.  Structural   iron  and  steel 

8.  Castings    

9.  Safes,   etc 

10.   Pipe,   wrought  iron 

Pipe  fittings 

Gas   and   gasolene   engines... 

Bathtubs     

Wire  fencing,   in  rolls 


11 
12 
It 

14 


Worcester,   Mass $0.22  $1.15  $1.37  $1.85 

Rochester,    N.    Y 2.00  ....  3.00 

Fall   River,   Mass 32  2.00  2.32  1.10 

Pittsburgh,  Pa 30  1.00  1.30  1.60 

Grand  Rapids,  Mich 48  1.50  1.98  2.G5 

Cleveland,    Ohio 25  1.00  1.25            

Pittsburgh,  Pa 16  .60  .76  .80 

Cleveland,   Ohio 16  .80  .96  .80 

Hamilton,    Ohio     30%  .90  1.20%  1.75 

Paterson,  N.  J 07  .45  .52  .65 

Paterson,  N.  J 07  .50  .57  .70 

Detroit     23%  1.00  1.23%  1.40 

Pittsburgh,  Pa 21  1.25  1.46  1.80 

Worcester,  Mass 17  .65  .82  .85 


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also  much  nearer  the  east,  owing  to  the  curva- 
ture of  the  California  coast,  and,  yet  again,  very 
much  nearer  in  railroad  time  and  cost  by  reason 
of  the  lower  grades  which  the  Southern  Sierras 
offer. .  The  last  two  are  railroad  factors,  the  first 
is  a  water  factor. 

Under  the  personal  direction  of  H.  O.  Davis, 
director  general  of  the  Exposition,  a  corps  of 
statisticians,  equipped  with  the  government  and 
state  reports,  private  data  and  water  and  rail 
freight  information,  has  been  at  work  for  several 
months.  The  figures  this  corps  has  prepared 
are  now  made  public  for  the  first  time. 

The  first  task  was  to  determine  the  potential 
"back  country."  A  carload  of  steel  was  brought 
from  Pittsburgh  to  eastern  tidewater,  transferred 
to  boat,  carried  through  the  Canal  and  up  to  San 
Diego,  there  transferred  to  train  and  carried  east- 
ward. The  same  theoretical  transfer  was  made 
with  other  commodities  from  various  points. 
Then  the  same  units  were  shipped  to  the  south- 
west by  all-rail  routes.  The  cost  of  both  routes 
was  kept  by  zones. 

The  charts  completed,  the  statisticians  found 
a  fairly  steady  line  where  the  cost  of  the  two 


26  counties,  in  Nevada  for  the  southern  half  8, 
and  for  the  southern  half  of  Utah  17  counties. 
Some  of  the  individual  counties  contain  as  many 
as  twenty  separate  valleys  and  plateaus,  but  all 
of  these  containing  2,000  acres^or  over  are  item- 
ized individually.  The  tabular  report  shows  popu- 
lation, altitude,  water  sources,  length  of  grow- 
ing season,  principal  farm  products,  the  number 
of  railroads  or  distance  to  the  nearest  road  and 
the  principal  town.  Then  comes  the  statement 
of  development,  the  acreage  of  irrigated  land  in 
1913,  of  other  cultivated  land,  the  percentage  of 
increase  over  1910,  the  acreage  of  other  irrigable 
lands  and  other  arable  lands,  and  the  total  area 
of  land  which  has  agricultural  possibilities. 

So  much  as  a  basis.  Certain  farmland  is  of 
such  a  character  as  to  make  it  most  profitable 
in  320-acre  units.  Other  land  can  be  operated  to 
better  advantage  in  40-acre  tracts,  even  smaller. 
But  for  estimate  purposes  these  two  classifications 
have  been  made  and  for  each  river  valley  or  plat- 
eau there  is  given  the  total  number  of  possible  320- 
acre  and  40-acre  farms,  their  total  being  an  ap- 
proximation of  what  the  agricultural  land  will 
have  when  it  is  fully  developed.     Whatever  the 


THE  SAN  DIEGO  EXPOSITION 


m 


unit  of  operation,  the  average  farm  population  is 
found  to  be  seven  persons,  and  on  this  basis  the 
probable  population  is  figured. 

Then  there  is  a  return  to  the  government  cen- 
sus figures,  and  a  citation  of  the  value  of  all  lands, 
all  farm  property,  and  domestic  animals,  poul- 
try and  bees.  From  the  same  source  is  taken  a 
report  on  the  value  of  all  livestock  products  in 
1909,  of  all  crops,  finally  of  all  mineral  products. 

These  data  have  been  carefully  checked  and 
assembled,  by  counties,  by  states,  and  finally  ar- 
ranged in  a  single  aggregate  table  for  the  entire 
southwest. 

There  is  no  mention  of  manufacturing  or  of 
cities,  the  entire  tabulation  concerning  only  land 
development  and  the  potentialities  of  agriculture. 
Hence  the  moderate  increase  of  population,  in- 
asmuch as  no  allowance  is  made  for  municipal 
growth. 

It  is  the  agricultural  possibilities  that  demand 
attention.  Southern  California  is  nearly  half 
developed,  so  far  as  occupation  is  concerned. 
Southwestern  Colorado  is  about  a  third  occupied. 
But  how  of  Utah  and  Arizona  and  Nevada  and 
New  Mexico?   Or  the  aggregate  for  the   entire 


What  of  the  goods  which  must  be  purchased 
by  the  people  who  occupy  these  742,931  farms? 
Here  are  figures  which  have  been  compiled  by 
specialists  in  that  field,  figures  for  the  lumber 
that  will  be  needed,  the  cement,  the  hardware, 
paints,  farm  machinery,  house,  implements,  every 
necessary  article  of  furniture  and  furnishings 
for  the  farm  and  the  house,  72  items  in  all,  figured 
separately  for  the  six  states,  and  the  totals  are 
most  interesting.  For  present  purposes  it  is  suffi- 
cient to  mention  only  the  total,  $4,148,378,117. 

The  Exposition's  methods  of  impressing  the 
facts  developed  by  these  statistics  is  unique.  For 
instance,  a  complete  equipment  of  heavy  machin- 
ery, such  as  is  used  in  large  scale  farming,  will 
be  in  actual  operation;  in  a  bearing  orchard  will 
be  demonstrated  the  most  advanced  methods  of 
caring  for  fruit  trees;  a  model  five  acre  irrigated 
farm,  already  in  a  high  state  of  cultivation,  shows 
what  a  great  variety  of  fruits,  vegetables,  and 
berries  may  be  profitably  grown,  on  a  small  scale, 
in  the  Southwest.  A  model  poultry  yard  and 
bungalow  complete  this  exhibit. 

From  the  standpoint  of  settlement,  this  inten- 
sive farming  display  is  significant,  as  it  shows 


Southwestern 
Colorado 
112,526 


Population.    1910    

l'robable  farm  population  after  total 
number  is  reached  at  rate  of  seven 
persons   per   farm 

Acreage  of  irrigated  lands  under  culti- 
vation, 1913   

Acreage  of  other  lands  under  cultiva- 
tion,  1913    

Acreage  of  other  irrigable  lands.   1913.. 

Acreage  of  other  arable  hinds,  1913 

Total  acreage  of  all  agricultural  lands. 
1913   

Possible  number  of  irrigated  40-acre 
farms     

Possible  number  of  320-acre  farms  of 
other  arable   lands 

Total  number  of  possible  farms  of  all 
agricultural    land     

Value  of  all  farm  property,  1910. 

Value  of  all  lands,   1910 

Value  of  domestic  animals,  poultry  and 
bees    

Value  of  live  stock  products  and  domes- 
tic animals  sold  or  slaughtered 

Value  of  nil  crops,   1909 

Value  of  farm  products.   1909 19,724,358 

Value  of  mineral  products,  1911 9.961,890 


399,784 

730,533 

515,967 
1,361,500 
1,024,000 

3,632,000 

52,300 

4,812 

57.112 
.  .  .MM42.01  I 
92,268,698 


Southern 

California 

815,452 

1,076,978 

1,044,894 

1,965,694 
4,723,527 
1,220,550 

8,954,665 

144,210 

9,644 

153,854 
595.5X0,821 
511,420,821 


Arizona 
204,354 

860.195 

600,000 

27,500 
3,919,000 
3,143,500 

7,690,000 

112,975 

9,910 

122.885 
75,123,970 
42,349,737 


New  Mexico 
327,301 

1,247,554 

1,013,777 

868,000 
4,858,500 
9,185,000 

15,925,277 

146,807 

31,415 

178,222 

159,447.990 

98,806,497 


South  Half 

Nevada 

36,596 

730,009 

227,000 

55,000 
3,679,500 
2,064,500 

6,026,000 

97,662 

6,625 

104.287 
15.998.372 
10,209,146 


South  Half 
Utah 
131,079 

885,997 
613,500 

nr,,ooo 

3.772,500 
5,000,000 

9,801,000 

109,650 


Total 
Southwest 
1,627,308 

5.200,517 

4,229,704 

3,847.161 
22,314,527 

21,637,550 

52,028,942 
663,604 


16,921 

126,571 
66,149,538 
40,613,771 


79,327 

742,931 
1,021,942,70! 

795,668,670 


15,219,741        33,800,481       26,050,870        43,494,674  3,750,201        16,415,179         138.731,146 


7.164.911 
12,559.447 


17.223,748 
52,749,243 
69.972.991 
31.400,950 


7,206,443 

5,496.872 

12,703,315 

44,157,223 


14,969.422 
8.922,397 

23.891,819 
7.230,768 


1,555.861 

2,028.597 

3,584.458 

30,424,565 


6.124,321 

7,727.7:' :i 

13,852.050 

13,542.842 


54,244.706 

89,4si,:;isr, 

143.728.991 

136.718,238 


southwest?  The  total  area  of  irrigated  land  under 
cultivation  in  1913  was  4,229,704  acres,  with 
3,847,161  other  cultivated  lands,  a  total  of  8,076,- 
865  acres.  The  total  of  irrigable  lands  other  than 
that  was  22,314,527  acres,  with  21,637,550  acres 
of  other  arable  lands  idle,  a  total  of  43,952,077 
acres — roughly  five  and  a  half  times  as  much  as 
is  now  under  cultivation. 

Skipping  the  next  item,  the  table  shows  the 
value  of  all  farm  property  in  1910.  It  figures 
$1,031,942,705.  It  shows  the  output  from  the 
farms  in  crops  and  livestock  products  in  1909  as 
$143,728,991  entirely  aside  from  the  $136,718,238 
mineral  products. 

There  are  further  figures  in  the  tables  that 
are  most  impressive.  The  thirty  standard  crops 
of  the  southwest,  fruits,  grapes,  grains,  grasses, 
vegetables,  cotton  and  nuts,  are  listed,  with  the 
averages  for  the  different  sections,  price  per  acre, 
and  price  for  the  total  investment  in  units  found 
operated  most  economically.  On  that  invest- 
ment is  shown  the  annual  gross,  the  cost  of 
labor,  of  water,  of  team  hire,  running  expense 
for  the  family,  and  interest  at  7  per  cent.  The 
net  results  follow  naturally. 


in  concrete  form  the  possibilities  of  the  small 
farm. 

There  are  plenty  of  these  small  farms  in  the 
west.  A  little  distance  from  San  Diego,  almost 
on  the  border  of  Mexico,  lies  an  important  colony 
of  "little  landers,"  many  of  them  farming  in 
units  of  less  than  an  acre,  and  yet  selling  enough 
garden  truck  from  that  tiny  spot  to  give  them  a 
sure  living,  and  a  sure,  though  small,  annual 
profit.  A  colony  of  Japanese,  situated  in  the  Mis- 
sion Valley,  near  the  old  mission  of  San  Diego  de 
Alcala,  demonstrates  the  efficiency  of  intensive 
farming  quite  as  vividly. 

If  any  considerable  portion  of  the  southwest 
be  settled  in  this  way,  naturally  the  statistics  pre- 
pared by  the  Exposition  will  prove  underestimates. 
They  are  averages  entirely,  but  by  far  the  best 
figures  of  the  sort  prepared  up  to  the  present. 
Also  they  are  ample  evidence  of  why  San  Diego 
is  holding  its  Exposition  of  1915,  regardless  of 
the  1915  program  of  San  Francisco.  The  smaller 
city  has  a  most  impressive  story  to  tell  the  world, 
and  incidentally  a  stage  of  gorgeous  beauty  on 
which  to  tell  it. 


Three  Principal  Species  of  Pacific  Coast  Timber. 


SUGAR 

AND 

WHITE  PINE. 

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REDWOOD. 


FIR, 


Complete  Record  of  All  Timber  Bonds 
Handled  by  CLARK  L.  POOLE  &  CO. 

A.  of  July  1st,   1914 

Of  the  total  $80,483,000  of  timber  land  bonds  purchased  and  sold 
by  Clark  L.  Poole  &  Co.  during  the  past  eleven  years  $23,982,500 
have  matured  to  date  and  been  paid,  or  called  in  prior  to  maturity 
at  a  premium. 

We  give  below  a  COMPLETE  tabulated  record  of  ALL  of  our 
loans.  The  last  two  columns  sum  up  the  operation  of  the  sinking 
fund — showing  the  percentage  of  the  loan  paid  off  as  compared  with 
the  percentage  of  timber  cut. 

Percentage  W  Percentage  of 

of  loan      JL      timber  cut 

paid  off ,  ■■   or  released. 


Names  of  Lumber  and       Total  amount  Now  out- 
Timber  Cos.  of  issue.  standing. 
Hudson  River  Lbr.  Co.$      560,000  None 
King- Ryder   Lbr.    Co..  360,000  None 

Rapides    Lbr.    Co 420,000  None 

Lufkin  Ld.  &  Lbr.  Co.  600,000         None 
Weed     Lbr.     Co.     (1st 

issue)     550,000  None 

C.     A.     Smith     Timber 

Co.    (1st  issue) 3,000,000 


J.  M.  Thompson  Lbr.Co.  600,000 

Westmorel'd  Lbr.  Corp.  1,094,000 

Ky.   &  Tenn.    Ry.    Co.  716,500 

Silverton   Lbr.    Co 153,500 

Wilson  River  T'ber  Co.  900,000 

Camp  &  Hinton  Co...  500,000 

Scranton    Lbr.    Co 1,000,000 

Champion  Lbr.  Co 2  500,000 

Cheboygan   Tbr.   Co...  150,000 

Consolidated  Land   Co.  1,000,000 

C.  D.  Danaher  Pine  Co.  600,000 

Delta  L'd   &  T'ber  Co.  4,000,000 

Dowling   Lbr.    Co 1,000,000 

Elk    Lbr.    Co 383,000 

Falls    City    Lbr.    Co...  250,000 

Fidelity  Lbr.   Co 250,000 

Fourche  River  Lbr.  Co.  230,000 

Fresno  Flume&  Lbr.  Co.  1,235,000 

Frost-Johnson  Lbr.  Co.  1,058,000 

Grandin    Lbr.    Co 1,600,000 

Great  So.   Lbr.   Co 2,140,000 

Hilton-Dodge   Lbr.    Co.  6,000,000 

Jones-Wheeler     Co 300,000 

F.  P.  Kellogg  Lbr.  Co.  250,000 

Lagoon   Lbr.   Co 2,000,000 

Long-Bell  Lbr.   Co 9,000,000 

Mendocino  RedwoodCo.  500,000 
Metropolitan     Redwood 

Lbr.    Co 310,000 

Miller  &  Vidor  Lbr.  Co.  375,000 
O.    D.    McHenry    Lbr. 

Co 150,000 

A.  J.  Neimeyer  Lbr.  Co.  500,000 

N.Y.&  P.  Redwood  Co.  500,000 

Nor.  Redwood  Lbr.Co.  1,900,000 

Norton   Lbr.    Co 100,000 

Ozan   Lbr.    Co 443,500 

Pacific    Lbr.    Co 2,000,000 

Parsons  Pulp  &  Lbr.Co.  3,300,000 
W.   R.    Pickering  Lum- 
ber   Co 800,000 

Pickering  Ld.  &  Tim.  Co.  1 ,027,000 

Santiam  Ld.&  Tim.  Co.  300,000 

Savannah    Timber    Co.  179,000 

Silver    Falls   Tim.    Co.  750,000 

C.    A.    Smith   Tim.    Co.  4,500,000 

So.  Pine  Lbr.  Co 750,000 

Spokane    Lumber    Co..  500,000 

Standard    Lumber    Co.  360,000 

Storey    Timber    Co 300.000 

Temple  Lumber  .  493,500 
Tillamook  Tim.  &  Log. 

Co 3,100,000 

Tremont     Lumber     Co.  2,500,000 

Tidewater    M.    Co 350,000 

Union     Lumber     Co. .  .  3,000.000 

Union    Saw   Mill    Co..  368,000 

Weed    Lumber    Co 1,200,000 

Wendling    Johnson 

Lumber    Co 1,177,000 

Willapa    Lumber    Co..  750,000 

Wind    River    Lbr.    Co.  250,000 

Yosemite    Lumber    Co.  3,450,000 


None 
None 
None- 

None 

None 

None 

None 

None 


Called  in 
at  103  & 
.interest 
&  paid, 
before 
maturity 


failed  in 
at  105. 
Called  in 
at   102. 
Called  In 
at  102%. 
Matured 
and  paid. 
Matured 
and  paid. 


;  2,385,000 
150,000 
600,000 
450,000 

3,896,000 
405,000 
383,000 
222,500 
180,000 
172,500 

1,146,000 

541,000 

1,600,000 

1,316,000 

5,473,000 

300,000 

250,000 

1,600,000 

4,557,500 

500,000 

290,000 
275,000 

65,000 

212,000 

400,000 

1,900,000 

60,000 

102,500 

2,000,000 

2,468,500 

400,000 
927,000 
300,000 
150,000 
750,000 
4,500,000 
200,000 
425,000 
1  74,000 
300,000 
286,000 

3,100,000 

1,450,000 

350,000 

3,000,000 

128,000 

850,000 

1,177,000 
750,000 
150,000 

3,333,000 


100% 
100% 
100% 
100% 

100% 

100% 
100% 
100% 

100% 

100% 

100% 

100% 

100% 

s%* 


5% 


40%  40% 

25%  13% 

2%t         3% 

59%  29% 

ii%°  '8% 

28%  14% 

25%t  19% 

7%  5% 

No  timber 

49%  cut 


38%  I 
8%ll 


15% 
5% 


No  timber 
20%  cut. 

49%         27% 


6% 
27%" 


19% 


57%  15% 
58%  42% 
20%  9% 

No  timber 
40%  cut. 


61% 
13% 


35% 
6% 


77% 

25  ■; 


50% 
10% 


16%tt     13% 

§  less    y2  % 

than 

73%         29% 
15%  6% 

52%         29% 


42% 


42% 


\y 


25% 


66%  ,ess   1% 

I  ban     ' 
29%         18% 


40% 
3% 


1% 
2% 


will  make    9%  paid  off. 

will  make     0%  paid  off. 

will  make  13%  paid  off. 

will  make  30%  paid  off. 

will  make  41%   paid  off. 

will  make  33%  paid  off. 

will  make  24%  paid  off. 

will  make    2%  paid  off. 


$80,583,000  $56,600,500 
*$107,368  in  sinking  fund  to  retire  bonds — which 
t  148.700  in  sinking  fund  to  retire  bonds — which 
°  6,445  in  sinking  fund  to  retire  bonds — which 
t  12,140  in  sinking  fund  to  retire  bonds — which 
*1  57.595  in  sinking  fund  to  retire  bonds — which 
**  25.307  in  sinking  fund  to  retire  bonds — which 
■H-  14.127  in  sinking  fund  to  retire  bonds — which 
§  11,872  in  sinking  fund  to  retire  bonds — which 
||In  process  of  reorganization. 

Note — Where  no  figures  are  shown  in  the  last  two  columns  showing  percentages, 
no  timber  lias  been  cut  and  no  bonds  matured. 

WE  DEAL  EXCLUSIVELY  IN  TIMBER  LAND  BONDS 

Circulars  describing  Four  issues,  the  unsold  portions  of  which 
we  are  now  offering,  to  yield  better  than  6%  per  annum,  will  be 
sent  upon  application. 

CLARK  L.  POOLE  &  CO. 

TIMBER  LAND  BONDS 


BANK  FLOOR 


102 


WESTMINSTER  BLDG.,  CHICAGO. 

Attention  is  called  to  the 
announcement  on  page  n 


The  Pacific  Lumber  Company 

Originally  Organized  February  24th,  1869 

Paid-up  Capital      -       -       -      $9,133,300.00  (Gold) 

Largest  Manufacturers  of 

REDWOOD 

(Sequoia  Sempervirens) 
Cut  500,000  Ft.  Daily 

Saw  Mills,  Planing  Mills,  Factories,  Redwood  Dryers, 
Dry  Sheds  and  Air- Drying  Yards 

At 

Scotia,  Humboldt  County,  Cal. 

"The  Home  of  Redwood" 


(Trade  Mark  Registered) 


Large   Stocks   of   Air-Dried   Redwood 

Twenty -eight  patented  Redwood  dryers  of  our  own  design  enable  us  to 
specialize  in  Seasoned  Redwood  for  Eastern  and  Export  shipment. 


GENERAL  OFFICES 
HOBART  BUILDING  -  SAN  FRANCISCO 

BRANCH  SALES  OFFICES 
New  York,  N.  Y.  Chicago,  III.  Saginaw,  Mich.  Kansas  City,  Mo.  Los  Angeles,  Cal. 

EXPORT  SALES  OFFICES 

A.  F.  THANE  &  CO.,  General  Export  Agents, 

SAN  FRANCISCO,  CAL.  LIVERPOOL,  ENG. 

Correspondents  in  the  principal  cities  of  the  world 


Attention  is  called  to  the 
104  announcement  on  page  n 


TIMBER 


105 


THE    REDWOOD   OF   CALIFORNIA. 
By  Junius  H.  Browne. 

The  market  for  Redwood  was  for  many  years 
uncertain  and  limited,  its  sale  depending  chiefly 
upon  the  California  demand.  The  development 
of  the  Eastern  and  foreign  business  was  slow,  be- 
cause there  was  no  direct  rail  connection  with 
the  Redwood  country,  it  being  necessary  to  bring 
all  shipments  into  the  harbors  of  San  Francisco 
or  Los  Angeles  for  reshipment.  The  opening  of 
the  Panama  Canal  and  the  completion  of  the 
Northwestern  Pacific  Railroad  into  Humboldt 
County  will  mean  much  to  the  Redwood  industry. 
With  the  canal  will  come  the  opportunity  of  mar- 
keting Redwood  throughout  the  world  in  parcel 
lots  of  twenty-five,  fifty,  or  one  hundred  thousand 
feet,  where,  heretofore,  it  has  been  necessary  to 
sell  in  cargo  lots  of  a  million  feet  or  more  to  ob- 
tain advantageous  freight  rates.  Direct  rail  con- 
nection with  the  mills  in  Humboldt  County  will 
enable  them  to  market  a  large  quantity  of  by- 
products which  are  now  burnt  up  or  sold  at  cost 
locally. 

The  earliest  logging  of  Redwood  forests  was 
by  the  Spaniards  near  San  Francisco  Bay,  but 
their  operations  were  very  small.  At  the  begin- 
ning of  the  nineteenth  century,  a  Russian  colony 
near  Fort  Ross  in  Mendocino  County,  cleared  a 
tract  of  Redwood  which  has  since  grown  up  and 
again  been  cut  over.  It  was  not  until  1850,  how- 
ever, that  small  sawmills  were  started  at  various 
points  along  the  coast.  There  are  now  eighteen 
or  twenty  important  mills  in  operation  with  a 
total  annual  output  of  550  to  600,000,000  feet. 

The  biggest  stands  of  Redwood  timber  are  in 
Del  Norte,  Humboldt  and  Mendocino  Counties, 
but  there  are  isolated  groups  as  far  north  as 
the  Chetco  River  in  Curry  County,  Ore.,  and  as 
far  south  as  the  Santa  Lucia  Mountains,  Mon- 
terey County.  The  Redwood  belt  is  from  twenty 
to  forty  miles  wide,  the  trees  growing  on  the 
west  slopes  of  the  coast  range.  The  enormous 
size  which  Redwood  attains  is  due  to  the  heavy 
rainfall  in  the  autumn  and  winter,  (from  thirty 
to  sixty  inches)  and  to  the  sea  fogs  which  bathe 
the  coast  in  the  summer.  On  the  slopes  Red- 
wood grows  mixed  with  other  woods  such  as  Red 
Fir,  Tan  Bark  Oak  and  White  Fir.  As  the  slopes 
become  moderate,  the  altitude  lower,  the  soil 
deeper  and  the  water  supply  better,  Redwood 
steadily  gains  on  the  other  species  until  on  the 
rich  flats  there  is  no  other  tree.  The  extreme 
form  of  the  Redwood  flat  is  along  the  Eel  River, 
and  here  the  trees  reach  their  greatest  known 
height  and  clear  length.  Under  best  conditions 
these  trees  grow  to  be  350  feet  high  with  a  diam- 
eter of  20  feet.  Most  of  the  Redwoods  cut  are 
from  400  to  800  years  old.  The  oldest  tree 
found  during  the  Government  investigation  in 
1900  was  1,373  years  old.  The  normal  tree  has 
a  straight,  slightly  tapered  bole  clear  for  more 
than  100  feet,  and  a  crown  of  horizontal  branches 
that  may  occupy  from  one-third  to  one-half  of 
its  total  length. 


The  enemies  of  Redwood  are  few  and  it  suffers 
from  them  less  than  other  trees.  The  wind  can 
scarcely  uproot  it,  insects  seem  to  do  it  little 
harm,  and  fungi  seldom  affect  it.  Fire  occasion- 
ally kills  whole  stands  of  young  Redwood  growth, 
but  is  unable  to  penetrate  the  sheathing  of  shag- 
gy bark  with  which  the  old  trees  protect  them- 
selves. 

The  yield  of  Redwood  will  average  from  75,000 
to  85,000  board-feet  per  acre,  but  some  of  the  flat 
lands  will  show  a  stand  of  1,000,000  feet  or  more 

j  to  the  acre.  It  is  estimated  that  there  is  stand- 
ing today  about  75,000,000,000  feet  of  merchant- 
able Redwood  timber,  so  that,  at  the  present  rate 
of  production,  there  is  more  than  a  century's 

I  supply  in  sight. 

The  value  of  the  stumpage  varies  from  $1.50 
to  $5.00  per  thousand  feet,  depending  upon  the 
character  of  the  timber  and  its  location  and  ac- 
cessibility. The  flat  timber  is  less  expensive  to 
log,  and  produces  a  greater  percentage  of  upper 
grade  lumber. 

Redwood  logging  is  expensive  and  difficult. 
The  average  cost  is, $5.00  to  $6.00  per  thousand 
feet.  On  the  flat  lands  it  will  go  as  low  as  $3.00  per 
thousand.  The  greatest  care  must  be*  taken  by  the 
choppers  in  felling  a  tree  so  that  it  will  strike 
throughout  most  of  its  length  at  the  same  time, 
otherwise  the  wood  will  break  and  splinter  bad- 
ly. When  felled,  the  tree  is  barked  and  cut  into 
lengths  from  16  to  40  feet.  Skid  roads  are  con- 
structed over  which  the  logs  are  hauled  to  the 
landings  and  loaded  on  cars  by  donkey  engines, 
on  their  way  to  the  sawmills. 

The  cost  of  converting  Redwood  logs  into  lum- 
ber is  from  $2.50  to  $3.00  per  thousand  feet,  this 
cost  being  increased  because  of  the  waste  in  man- 
ufacture, and  because  of  the  large  amount  of 
small  sizes  which  the  market  calls  for.  Some 
logs  are  so  large  that  they  have  to  be  split  before 
the  carriage  will  handle  them  in  the  mills.  All 
machinery  must  be  of  the  heaviest. ' 

In  this  country  Redwood  is  used  very  largely 
for  exterior  finish.  It  is  particularly  valuable 
for  this  sort  of  work  because  of  its  lasting  qual- 
ities and  its  resistance  to  fire.  Redwood  con- 
tains a  peculiar  acid  which  preserves  the  wood. 
Many  examples  can  be  given  of  buildings  sided 
with  Redwood  boards  and  covered  with  Red- 
wood shingles  that  are  today  in  firstclass  con- 
dition after  fifty  or  sixty  years  of  continuous  use 
without  paint  or  treatment  of  any  kind.  Red- 
wood contains  no  pitch,  will  not  ignite  easily,  and 
burns  very  slowly.  After  the  great  San  Fran- 
cisco fire  in  April,  1906,  the  Building  Committee 
appointed  by  the  Mayor  specified  galvanized  iron 
and  redwood  as  the  only  materials  from  which 
temporary  buildings  might  be  erected  without  a 
permit. 

The  United  States  Government  has  compiled 
a  list  of  woods  designating  the  degree  of  inflam- 
mability by  the  position  on  the  list.  Redwood 
heads  this  list. 

The  better  grades  of  Redwood  are  peculiarly 
fitted  for  the  better  class  of  interior  finishing. 


THE    REDWOOD    FOREST. 


TIMBER 


107 


It  has  an  effective  natural  grain,  so  that  it  is  not 
necessary  to  select  special  pieces  for  finish.  It 
is  easily  worked  and  takes  a  beautiful  polish. 
When  the  wood  is  once  properly  dried,  it  will  not 
shrink,  swell,  or  crack.  It  is  used  for  all  kinds 
of  exterior  and  interior  work. 

There  are  various  kinds  of  special  work  to 
which  this  wood  is  especially  adapted  on  account 
of  its  peculiar  qualities,  such  as  incubators,  bee- 
hives, pattern  stock,  tank,  pipe  and  silo  staves, 
cores  for  veneer  work,  caskets  and  casket  boxes. 

The  lower  grades  of  Redwood  are  used  for  all 
kinds  of  foundation  work,  irrigation  work,  and 
for  railway  ties  and  tunnel  timbers.  Red- 
wood is  not  only  valuable  for  these  purposes  be- 
cause of  its  durability  and  freedom  from  decay 
or  rot,  but  also  because  it  is  not  susceptible  to 
the  attacks  of  insects,  such  as  the  white  ant,  that 
destroy  other  woods. 

Notwithstanding  the  handicaps  that  have  ex- 
isted in  connection  with  the  marketing  of  Red- 
wood in  the  East,  the  present  volume  of  Eastern 
shipments  is  now  about  75,000,000  feet  annually. 
This  stock  is  distributed  in  practically  every 
State,  except  those  in  the  extreme  south.  While 
Redwood  is  extremely  heavy  when  it  is  first  cut, 
it  dries  out  very  light  so  that  it  may  be  advan- 
tageously shipped  at  high  freight  rates  in  com- 
petition with  other  woods.  The  foreign  market 
takes  even  greater  quantities  of  Redwood  than 
the  Eastern  market.  Australia  and  the  United 
Kingdom  are  the  largest  consumers  of  the  Up- 
per grades,  while  the  west  coast  of  South  Amer- 
ica, India,  China,  the  Philippine  and  Hawaiian 
Islands  use  quantities  of  Redwood  ties.  Smaller 
shipments  of  Redwood  have  been  made  to  the 
east  coast  of  South  America,  France,  Germany 
and  South  Africa.  Earlier  shipments  of  Clear 
Redwood  to  Australia  and  Great  Britain  were 
largely  heavy  plank  in  the  green  state.  Recently 
both  of  these  countries  have  begun  to  realize  the 
advantage  of  purchasing  seasoned  material  in 
the  sizes  that  are  actually  going  to  be  used,  and 
as  many  of  the  mills  are  now  equipped  to  han- 
dle seasoned  stock  in  large  quantities,  the  vol- 
ume of  business  has  been  considerably  increased. 
Australia  has  already  ordered  50,000,000  feet  of 
Clear  Redwood  in  1914. 

The  problem  of  drying  Redwood  properly  has 
been  serious  because  of  the  large  amount  of 
moisture  the  wood  contains.  Earlier  shipments 
of  kiln-dried  material  did  not  give  satisfaction  be- 
cause excessive  or  too  rapid  drying  left  the  wood 
brittle  and  likely  to  split.  Now  the  manufacturers 
realize  that  the  best  method  of  artificial  drying 
is  the  one  that  approaches  most  nearly  the  nat- 
ural air-drying,  namely,  a  low  heat  with  a  big 
circulation  of  air  to  carry  off  the  moisture. 

The  ability  to  furnish  seasoned  Redwood  in 
large  quantities  will  undoubtedly  open  new  mar- 
kets throughout  the  world,  and  with  the  im- 
proved conditions  for  marketing  their  products, 
the  Redwood  manufacturers  are  looking  forward 
to  a  period  of  prosperity  that  will  increase  rap- 
idly as  the  true  worth  of  the  wood  is  recognized 
in  a  greater  degree. 


PACIFIC  COAST  TIMBER 
By  G.  X.  Wendling. 

The  annual  production  of  lumber  is  about  forty 
billion  (40,000,000,000)  feet  for  the  entire  United 
States.  Of  this,  the  Pacific  Coast  now  produces  over 
one-fifth, — manufacturing  about  eight  billion  two 
hundred  million  (8,200,000,000)  feet,  That  this 
total  will  be  largely  increased  by  the  opening  of  the 
Panama  Canal  to  commerce,  is  generally  expected 
by  well  informed  people.  This  belief  is  based  on 
the  fact  that  the  rail  freight  on  lumber  from  the 
Pacific  to  the  Atlantic  is  approximately  seventeen 
dollars  per  thousand  feet,  whereas  it  is  stated  by  the 
steamship  companies  that  the  present  tentative  rate 
of  thirteen  dollars  per  thousand  by  the  new  water 
route  will  later  be  materially  reduced.  The  present 
rail  rate  permits  the  shipment  of  only  a  small 
amount  of  the  highest  grades.  A  substantially  lower 
rate  will  allow  shipment  of  even  the  lowest  grades. 

If  we  accept  the  figures  given  in  the  report  of  the 
U.  S.  Commissioner  of  Corporations  on  the  lumber 
industry  published  February  13,  1911,  the  duration 
of  the  business  on  the  West  Coast  is  based  on  a  stand 
estimated  at  over  fifteen  hundred  billion  feet,  dis- 
tributed as  follows : 

Montana 65,600,000,000 

Idaho 129,100,000,000 

Washington 391,000,000,000 

Oregon 545,800,000,000 

California    381,400,000,000 


Total 


,1,512,900,000,000 


The  length  of  time  necessary  to  cut  this  supply 
will  depend  on  future  demand.  From  year  to  year, 
the  consumption  of  lumber  is  increasing  while  the 
supply  in  the  forests  is  not. 

Heretofore,  many  people  have  hesitated  to  invest 
money  in  the  securities  of  timber  and  lumber  com- 
panies because  ignorant  writers  and  interested  parties 
have  spread  the  idea  that  twenty  years  cut  would  en- 
tirely obliterate  the  lumber  industry.  The  business 
on  the  Pacific  Coast  has  a  good  life  before  it  and  the 
present  method  of  issuing  serial  bonds  on  timber 
properties,  when  bonds  are  protected  by  sinking  funds 
collected  as  the  timber  is  cut,  makes  timber  invest- 
ments on  the  Pacific  Coast  safe  and  profitable. 

In  earlier  years,  the  fire  hazard  was  viewed  as  a 
serious  obstacle  to  investment  in  timber  but  the 
difficulty  of  protection  from  fire, — it  may  be  said 
without  fear  of  successful  contradiction, — is  no  longer 
a  serious  matter,  for,  with  the  splendid  forest  protec- 
tion systems  now  in  operation,  timber  owners  have 
the  fire  risk  safely  underwritten.  That  there  may 
be,  and  no  doubt  will  be,  forest  fires  goes  without 
saying,  yet  the  risk  of  fire  is  down  to  a  minimum 
and  standing  timber  is  as  safe  from  fire  as  property 
in  any  of  our  Western  cities.  In  some  classes  of 
timber,  such  as  Redwood,  there  is  no  fire  risk,  and  in 
others  the  danger  is  so  slight  as  to  be  negligible 
from  a  practical  viewpoint. 

The  value  of  merchantable  stumpage  on  the  Pacific 
Coast  is  governed  largely  by  its  accessibility  and  ease 
of  operation.  It  must  be  within  reach  of  transporta- 
tion and  it  must  be  so  situated  that  the  cost  of  put- 
ting a  road  into  it  will  not  be  a  burden  on  future 


108 


TIMBER 


operations.  The  nature  of  the  country  in  which  the 
timber  grows  should  be  favorable  for  logging  and 
handling  so  as  to  enable  the  logger  to  get  the  logs 
to  the  main  line  of  railroad,  or  to  the  mill,  at  a  cost 
that  will  permit  profitable  operation. 

Nearly  all  the  timber  on  the  West  Coast  is  large 
and  the  logging  equipment  must  be  big  and  power- 
ful. The  logging  cost  varies  in  different  localities, 
but,  throughout  the  Coast,  it  usually  runs  from  $4.50 
to  $7  per  thousand  feet,  including  the  cost  of  build- 
ing logging  railroads.  The  construction  of  these 
roads  may  be  estimated  as  costing  about  one  dollar 
per  thousand  feet  on  an  average  operation. 

In  the  region  extending  from  California,  to  British 
Columbia,  and  east  to  the  Rocky  mountains,  grows 
the  Douglas  Fir  or  Oregon  Pine.  There  are  two 
forms  of  this  tree  known  as  "Yellow  Fir"  and  "Red 
Fir."  Sometimes  both  grades  of  lumber  are  cut 
from  one  tree  but  chiefly  the  trees  of  each  form  grow 
on  different  kind  of  ground.  The  "Yellow  Fir" 
is  found  in  thick  forests  on  deep,  moist  soil  and  the 
"Red  Fir"  on  the  thinner  soils  with  less  moisture. 

The  wood  of  the  "Yellow,"  which  is  softer  than 
the  "Red,"  is  of  a  light  yellow  color.  The  wood 
of  Douglas  Fir  is  beautifully  grained,  has  good  ten- 
sile strength,  and  comes  in  long  lengths.  It  is  in 
demand  for  spars,  bridges,  and  framing  timbers.  It 
is  also  adapted  for  flooring,  inside  finish,  doors,  and 
other  building  purposes.  It  is  one  of  the  most 
valuable  all-purpose  woods  in  North  America.  The 
size  of  the  trees  range  from  four  to  twelve  feet 
in  diameter  and  up  to  two  hundred  feet  to  the 
first  limb.  The  stands  of  fir  run  from  thirty  thousand 
feet  up  to  a  hundred  thousand  feet  per  acre.  The 
total  stand  on  the  Pacific  Coast  of  the  United  States 
is  approximately  640,000,000,000  feet,  exceeding  the 
stand  of  any  other  wood  in  that  region. 

A  strip  of  territory  along  the  Pacific  Coast  from 
California  to  Alaska,  stretching  out  in  places  to  a 
width  of  two  hundred  miles,  produces  one  of  the 
largest  trees  in  the  world,  known  as  Menzies  Spruce. 
This  tree  yields  a  wood  that  does  not  impart  taste 
or  odor,  and  makes  an  excellent  container.  It  is  also 
adapted  to  paper  making,  car  siding,  roofing  and 
inside  finish.  Where  soil  and  climatic  conditions 
are  favorable  the  tree  grows  rapidly  and  at  times 
attains  a  diameter  of  seventeen  feet  and  a  height 
of  two  hundred  and  sixty  feet.  It  is  the  next  largest 
tree  to  the  Redwood.  The  approximate  stand  in 
California,  Oregon  and  Washington  of  Menzies  or 
Tideland  Spruce  is  23,000,000,000  feet. 

Through  the  Coast  mountains  and  on  the  western 
slope  of  the  Cascade  range  is  found  the  Western 
Hemlock,  which  sometimes  grows  in  almost  pure 
stands.  Its  wood  is  free  from  pitch,  of  a  light 
color  and,  wrhen  thoroughly  seasoned,  is  a  most  valu- 
able lumber.  The  name  "Hemlock"  was  an  unfor- 
tunate title  for  this  valuable  wood  which  resembles 
the  Hemlock  of  the  East  only  in  such  externals 
as  the  color  and  general  appearance  of  its  foliage. 
Owing  to  the  prejudice  against  the  inferior  Eastern 
Hemlock,  the  Western  Hemlock  was  at  first  sold 
under  the  names  of  "Alaska  Pine,"  "Mountain 
Spruce,"  "Silver  Fir,"  "Gray  Fir,"  "Washington 
Pine,"  "Hemlock  Larch,"  and  other  titles.  However 
its  native  value  and  splendid  possibilities  have  forced 


it  into  the  favor  of  buyers  and  users,  adjusted  the 
misunderstanding  of  its  qualities,  permitted  it  to 
discard  all  disguises  and  enabled  it  to  enter  the 
mechanical  field  on  a  par  with  most  other  soft 
woods,  and  to  sell  under  its  own  name.  Much  of  the 
timely  recognition  of  the  superior  qualities  of  West- 
ern Hemlock  has  resulted  from  the  thorough  tests 
carried  on  by  the  United  States  Forest  Service  at  the 
University  of  Washington.  These  tests  show  conclu- 
sively that,  while  in  its  green  state,  it  is,  to  a  slight 
degree,  inferior  in  strength  to  some  other  woods, 
its  power  of  resisting  rupture,  crushing,  and  splitting 
is  increased  from  20%  to  25%  by  seasoning.  In  the 
process  of  seasoning,  it  loses  from  15%  to  20',  in 
weight  and  only  3%  to  4%  in  volume.  When  dry, 
therefore,  it  compares  favorably  with  any  of  the 
evergreens.  Western  Hemlock  is  practically  free 
from  "shake,"  differing  greatly  in  this  respect  from 
the  Northern  and  Eastern  varieties.  The  tree  is 
straight  and  tall,  large  in  size,  often  growing  to  six 
and  eight  feet  in  diameter.  The  total  quantity  on 
the  Pacific  Coast  of  the  United  States  is  about 
88,000,000,000  feet. 

At  altitudes  of  from  two  thousand  to  five  thousand 
feet,  on  the  Western  slope  of  the  Cascade  mountains 
and  also  through  the  Coast  Range,  is  found  Larch  or 
Noble  Fir.  The  wood  of  this  tree  which  is  creamy 
white  in  color  and  is  free  from  pitch  or  resinous  mat- 
ter. The  fibre  is  soft,  satiny,  and  susceptible  of  a 
high  polish.  The  lumber  is  easily  worked  and 
valuable  for  inside  finish.  This  tree  attains 
a  height  of  one  hundred  fifty  to  two  hundred  and 
eighty  feet  and  a  diameter  of  three  to  nine  feet. 
The  trunks  are  very  erect  and  smooth,  preserving 
a  uniform  diameter  to  a  height  of  one  hundred 
feet. 

Along  the  western  slopes  of  the  Cascades  and 
throughout  the  Coast  Range  grows  the  Western  Red 
Cedar.  Its  heaviest  stands  are  in  the  state  of  Wash- 
ington where  the  abundant  rainfall  and  other  cli- 
matic factors  fill  its  growing  needs.  Its  reddish  brown 
wood  is  soft,  easily  worked  and  very  durable.  Its 
wonderful  lasting  qualities  under  exposure  have  led 
to  its  use  in  large  quantities  for  shingles.  The  state 
of  Washington  is  the  largest  maker  of  shingles, 
producing  about  85%  of  the  total  shingle  output  in 
the  United  States.  The  tree  often  attains  a  height 
of  two  hundred  feet.  Its  average  is  more  than  one 
hundred  feet.  Diameter  three  to  nine  feet.  Some- 
times trees  are  found  having  diameters  of  fifteen 
feet.  The  exact  quantity  of  this  timber  is  not 
known,  but  there  is  a  good  supply. 

In  the  Coos  Bay  region,  in  the  southwestern  part  of 
Oregon,  is  found  the  most  valuable  species  of  cedar  in 
the  state,  known  as  Port  Orford,  or  White  Cedar, 
The  yellowish  wood  of  this  tree  is  very  durable, 
easily  worked,  takes  a  high  polish  and  contains  a 
large  quantity  of  resin.  The  odor  from  the  resin 
is  supposed  to  be  offensive  to  insects,  and  for  this 
reason  the  wood  is  used  in  large  quantities  in  the 
manufacture  of  cedar  chests  for  the  protection  of  all 
kinds  of  cloth  and  fur  clothes.  The  oil  of  the  resin 
prevents  decay,  and  the  wood  is  extensively  used 
in  shipbuilding.  The  trees  grow  as  high  as  two 
hundred  feet  and  have  diameters  from  three  up  to 
ten  feet,  but  the  latter  size  is  rarely  found.     The 


TIMBER 


109 


stands  of  this  timber  run  about  twenty  thousand  feet 
per  acre  and  in  isolated  cases  as  high  as  one  hundred 
thousand  feet.  The  total  quantity  of  Port  Orford 
Cedar  is  supposed  to  be  about  5,000,000,000  feet 

Sugar  and  White  Pine  grow  along  the  western 
slopes  of  the  Cascade  and  Sierra  mountains  from 
Central  Oregon  to  Central  California.  The  trees 
flourish  at  elevations  of  fifteen  hundred  to  seven 
thousand  feet,  hut  the  choicest  growth  is  found  be- 
tween three  thousand  and  fifty  five  hundred  feet 
above  sea  level.  The  trees  grow  iii  a  mixed  forest 
carrying  about  an  equal  quantity  of  Sugar  and  White 
Pine  and.  generally,  other  woods  such  as  White  and 
Red  Fir.  It  is  a  common  remark  among  California 
lumbermen  that  our  forests  run  about  one-third  Sugar 
Pine,  oik -third  White  Pine  and  one-third  White  and 
Red  Fir,  with  Bome  Incense  Cedar.  Sugar  and  White 
Pine  are  useful  mainly  foi  general  building  lumber. 
They  make  a  beautiful  house  finish  and  trim,  possess 
exceptional  value  for  doors,  windows,  blinds.    As  a 


veneer  material,  they  have  no  superior  in  soft  woods, 
as  they  are  entirely  free  from  face  checking.  For 
the  manufacture  of  box  shooks,  these  woods  are  truly 
wonderful  because  the  White  and  Sugar  Pine  shooks. 
when  ready  for  use  may  he  shipped  to  any  climate 
without  checking.  In  California  the  fruit  products 
are,  in  the  main,  packed  in  White  and  Sugar  Pine 
boxes.  The  consumption  of  raw  material  for  this 
purpose  reaches  the  generous  total  of  about  two  hun- 
dred million  feet  annually.  When  thoroughly 
seasoned,  Sugar  Pine  is  not  subject  to  expansion  or 
contraction  and.  therefore,  is  superior  to  all  known 
soft  woods  for  making  piano  keys  and  pattern  mate- 
rials. The  wood  of  Sugar  and  White  Pine,  which  is 
soft  and  creamy  white,  is  used  for  the  same  purposes 
as  the  White  Pines  of  Michigan,  Wisconsin  and 
Minnesota.  The  trees  grow7  up  to  twelve  feet  in 
diameter,  and  reach  a  height  of  two  hundred  and 
fifty  feet.  The  total  quantity  of  these  woods  in 
California  is  about  306,000,000,000  feet. 


PARTIAL   VIEW  OF  A   LUMBER   MILLING   OPERATION    IN    WASHINGTON. 


110 


TIMBER  SECURITIES 


TIMBER  BONDS. 

Features  Deserving  Consideration. 

By  T.  S.  McGrath. 

The  timber  bond  issue  should  be,  and  generally 
is,  a  first  mortgage  on  all  the  property  of  the 
company,  but  the  real  security  on  which  the  issue 
is  based  is  the  green  and  growing  timber. 

The  margin  of  safety,  as  regards  principle,  is 
easily  determined  and  is  generally  ample.  Timber 
is  a  staple  and  its  products  have  an  established 
market.  The  industry  pays  vast  sums  to  the 
people  in  the  form  of  wages,  to  the  governments 
as  taxes,  to  transportation  companies  for  carry- 
ing charges,  to  mill,  foundries  and  supply  houses 
for  equipment.  The  quantity  and  quality  of  stump- 
age  on  a  given  area  can  be  examined,  estimated, 
graded  and  valued  with  a  great  degree  of  accu- 
racy, and  its  loan  value  definitely  determined. 
Timber  differs  from  coal  and  iron  which,  once 
mined,  can  never  be  replaced.  Timber  is  a  crop, 
and  with  care  in  cutting  and  some  attention  to 
the  logged-off  land,  it  will  again  produce  a  forest 
in  a  reasonable  time.  When  accurately  estimated 
and  properly  appraised,  it  is  a  sound  security  for 
loans  and  a  profitable  investment,  which  contains 
certain  basic  features  of  safety  not  always  to  be 
found  combined  in  other  classes  of  collateral. 

Defaults  which  occur  in  timber  bond  issues  do 
not  always  come  about  through  insufficient  col- 
lateral security.  Frequently  they  are  caused  by 
unwise  provisions  in  the  trust  deed  regarding 
sinking  fund  requirements  and  serial  maturities. 

As  timber  is  cut  and  removed  from  the  land,  a 
sinking  fund  of  a  certain  sum  per  thousand  feet 
is  paid  to  the  trustee  for  the  retirement  of  the 
principal,  which  is  usually  represented  by  serial 
fronds,  maturing  at  specified  intervals.  This  sink- 
ing fund  should  not  be  applied  to  the  payment 
of  interest. 

The  heavy  cost  of  building  present  day  mills 
and  constructing  railways,  make  it  necessary  to 
provide  a  supply  of  timber  that  will  furnish 
raw  material  for  many  years.  This  involves 
a  large  initial  investment.  This  timber  can  only 
be  cut  at  a  certain  rate  per  month,  and  the  bonds 
are  made  retirable  every  six  months  in  amounts 
based  on  the  capacity  of  the  mill  and  the  amount 
to  be  paid  into  the  sinking  fund.  The  interval 
allowed  before  the  first  serial  maturity  is  a  very 
serious  matter.  In  many  instances  this  interval 
is  too  short,  and  the  necessity  of  meeting  a  large 
payment  after  only  a  brief  period  of  oper- 
ation is  too  great  a  burden.  To  provide  for 
early  maturities  it  is  necessary  to  create  heavy 
sinking  fund  payments,  and  these  factors  con- 
stitute a  serious  danger.  This  danger  is  some- 
times overlooked  or  ignored  by  underwriters  be- 
cause it  is  easy,  in  many  instances,  to  sell  early 
maturities,  and  it  has  been  easier  to  sell  all  the 
maturities  if  they  had  a  brief  life  than  if  they  ran 
for  a  long  period. 

Buyers  of  timber  bonds  have  become  alive  to 
these  dangers  and  it  is  safe  to  say  that,  hence- 
forth, the  amount  paid  to  the  sinking  fund  will  be 
reduced  to  a  minimum,  the  first  maturity  post- 


poned for  a  safe  number  of  years,  the  serial  pay- 
ment made  as  small  as  possible,  and  the  life  of 
the  loan  extended  over  the  longest  permissible  pe- 
riod. Provisions  regarding  these  matters  must 
necessarily  be  regulated  according  to  the  particu- 
lar property  under  consideration,  but  safety  de- 
mands their  careful  adjustment. 

The  amount  and  kind  of  timber  on  a  given  area, 
and  the  cost  of  manufacturing  it  determines  the 
loan  value  or  the  purchase  price  of  timber  land. 

The  quantity  and  quality  of  timber  is  deter- 
mined by  an  examination  of  the  land  known  as 
"cruise."  The  cruiser  should  estimate  the  amount 
of  each  kind  and  grade  of  timber  on  the  tract. 
When  timber  was  very  cheap  a  "rule  of  thumb" 
method  of  doing  this  was  sufficiently  accurate. 
In  the  old  days  there  were  no  bonds  outstand- 
ing against  the  timber  and  an  owner  could  cruise 
to  suit  himself.  Today,  however,  the  value  of 
timber  land  has  increased  to  such  an  extent  that 
"rule  of  thumb"  estimating  should  no  longer  be 
countenanced.  There  is  no  reason  why  a  cruiser 
should  be  permitted  to  place  the  loan  value  on 
the  timber,  to  estimate  the  logging  cost,  to  lay 
out  the  probable  railway  line,  to  guess  the  mill- 
ing cost,  and  to  appraise  mill  value.  The  values 
should  be  figured  by  an  expert;  the  logging  cost 
should  be  determined  by  a  logging  engineer; 
the  railway  should  be  laid  out  by  a  civil 
engineer;  the  milling  cost  should  be  worked 
out  by  a  millman  who  is  perfectly  familiar 
with  the  particular  kind  of  timber  to  be  manufac- 
tured. All  these  estimates  and  reports,  including 
the  legal  opinion  of  the  titles,  should  be  corre- 
lated by  a  capable  man,  and  the  loan  viewed  and 
and  analyzed  as  a  whole.  There  are  many  able 
cruising  engineers  whose  men  are  educated,  ex- 
perienced and  capable.  There  is,  therefore,  no 
excuse  for  the  continuance  of  the  antiquated  and 
dangerous  methods.  The  mistakes  made  through 
employing  them  are  rarely  discovered  soon 
enough  to  prevent  trouble. 

Recently  some  cruising  firms  have  been  prone 
to  over-estimate  the  quantity  and  quality  of  tim- 
ber on  a  tract.  This  class  of  cruiser  estimates 
everything  that  could  be  profitably  taken  out  in 
the  highest  lumber  market;  and,  occasionally, 
much  more.  When  prices  are  normal  it  is  impos- 
sible for  the  operator  to  get  as  much  timber  off 
the  land  at  a  profit  as  such  a  cruiser  estimated, 
and  when  prices  are  low  the  shortage  from 
the  cruise  is  very  heavy.  The  lumberman  cannot 
get  cost  out  of  low  grade  logs  or  tops,  and  must 
leave  them  in  the  woods  unless  lumber  prices 
are  high.  Thus  the  supposed  security  of  the 
bond  holder  shrinks.  Should  the  operator  fail, 
the  hope  of  the  bond  holder  is  in  the  timber,  and 
if  this  timber  is  estimated  to  show  twenty  to  fifty 
per  cent  more  on  the  land  than  really  exists  in 
commercial  grades,  the  bonds  may  not  pay  out 
after  deducting  court  fees,  receiver's  charges  and 
other  expenses  incident  to  foreclosure. 

There  are  tracts  of  timber  now  under  offer  in 
this  country  and  Europe  where  the  cruises  have 
been  lifted  fifty  per  cent  and  the  values  over  one 
hundred  per  cent.     Such  tracts  have  been  sold 


TIMBER  SECURITIES 


111 


here  and  abroad  during  the  past  six  years.  Bond 
buyers  should  scrupulously  guard  against  excess 
cruises  and  valuations  by  purchasing  their  bonds 
through  conservative  houses  and  banks. 

Over-production  has  always  been  the  bane  of 
the  lumber  business.  In  early  days  the  ease  of 
entering  the  trade  and  the  profits  to  be  derived, 
in  good  years,  from  sawing  logs,  caused  num- 
bers of  small  mills  to  spring  up  through  the  tim- 
ber states.  These  mills  butchered  the  log  as  well 
as  the  price,  and  finally  raised  the  production  of 
lumber  far  beyond  the  consumption.  When  this 
stage  was  reached  the  lumber  buyer  found  him- 
self in  a  position  to  insist  that  proper  grades 
and  kinds  of  lumber  be  delivered  on  his  or- 
ders. He  also  insisted  on  careful  sawing,  even 
widths,  uniform  thickness  and  merchantable 
Quality.  These  demands  the  small  mills  that  were 
only  designed  to  rip  the  log  and  butcher  the 
board  could  not  meet,  and  they  gradually  ceased 
to  exist.  They  were  succeeded  by  larger  mills, 
and  in  recent  years,  these,  in  turn  have  been  im- 
proved, or  replaced  by  large  band  mills  that  op- 
erate with  wonderful  economy  and  efficiency.  The 
purpose  of  the  timber  bond  should  be  to  secure 
for  the  existing  mills  the  necessary  lands  to  keep 
them  running  and  to  add  the  latest  improvements 
as  they  are  perfected  and  to  provide  capital  for 
such  new  enterprises  as  rigid  investigation  shows 
are  fully  warranted.  Bond  buyers  should  learn 
to  recognize  promotion  enterprises  however 
skillfully  disguised,  and  avoid  purchase  of  their 
securities. 

The  purchaser  of  the  bonds  of  public  utility  or 
industrial  companies  insists  on  the  highest  oper- 
ating efficiency  in  the  active  management  of  the 
company  whose  securities  he  holds.  The  holder 
of  the  timber  bond,  who  provides  the  operating 
capital,  is  entitled  to  the  same  consideration  from 
the  lumber  mill  man,  yet,  if  the  situation  is  care- 
fully analyzed,  he  finds  that  there  is  a  wide  dif- 
ference between  the  methods  of  lumber  manufac- 
turers and  those  of  the  manufacturers  of  many 
other  staple  commodities. 

The  bond  holder  is  supposedly  secured  by  the 
entire  contents  of  the  tree,  but  he  finds  that 
only  that  portion  of  sufficiently  high  quality  to 
permit  of  its  being  profitably  manufactured  into 
lumber,  is  taken  out  of  the  forest.  The  remainder 
of  the  tree  is  wasted.  He  finds  that  the  parts 
of  the  tree  now  discarded  could  be  converted 
into  marketable  products,  but  that  the  skill  for  do- 
ing this  in  commercial  quantities  is  lacking.  While 
he  holds  the  entire  tree  as  security  for  his  bonds 
he  accepts  a  small  portion  of  it  as  payment,  which 
is  bad  practice  if  his  bond  has  a  long  life.  A  large 
quantity  of  the  timber  content  of  every  tree  is 
wasted.  Extension  of  the  uses  of  the  vol- 
ume of  the  tree  and  improvements  in  the  manu- 
facture of  wood  products  have  not  kept  pace  with 
the  improvements  in  the  other  industries  of  this 
country. 

We  have  heard  a  great  deal  about  conservation 


of  our  timber  resources.  True  conservation  should 
look  to  the  recovery  of  the  entire  merchantable 
content  of  the  tree — the  extraction  of  all  of  the 
wealth  that  the  tree  contains,  whether  in  lum- 
ber or  other  products.  The  so  called  "conserva- 
tionists" have  preached  the  non-cutting  of  trees 
and  the  non-use  of  the  forest  areas.  This  theory 
that  non-use  is  conservation  is  a  fallacy  that  must 
inevitably  be  superseded  by  the  practice  of  com- 
plete utilization. 

It  is  a  waste  of  energy  to  say  that  trees  in  the 
forest  must  not  be  cut,  but  allowed  to  die  of  old 
age  and  rot.  The  over  ripe  trees  make  poor 
lumber,  are  always  in  danger  of  being  blown 
down  by  the  wind,  clutter  the  land  and  occupy  the 
space  that  should  be  devoted  to  green  and  grow- 
ing and  living  timber.  Every  tree  must  die  and  full. 
Permitting  them  to  stand  until  they  are  downed 
by  decay  makes  them  unfit  for  lumber,  removes 
that  much  material  from  the  market  and  raises 
the  price  of  wood  products. 

The  Bureau  of  Forestry  is  not  giving  the  atten- 
tion and  aggressive  interest  to  furthering  the  uses 
of  the  entire  tree  that  the  importance  of  such 
work  demands.  The  country  is  in  greater  need 
of  experts  in  the  manufacture  of  wood  products 
than  in  the  policing  of  tracts  of  growing  timber. 
Trees  are  a  natural  crop  and  if  given  the  right 
chance  will  reproduce  themselves,  but  it  takes 
brains,  skill  and  energy  to  manufacture  them  into 
finished  materials.  We  need  schools  for  teaching, 
and  experiment  stations  and  men  for  directing 
the  utilization  of  the  entire  content  of  a  tree,  far 
more  than  we  need  instructions  on  how  to  grow  a 
tree.  Even  under  the  present  crude  methods  of 
manufacture  we  have  enough  timber  to  last  a  very 
long  time,  and  if  complete  use  of  the  tree  was  es- 
tablished our  timber  resources  could  be  very  con- 
servatively figured  as  perpetual.  The  Bureau  of 
Forestry  is  the  arm  of  the  Government  that 
should  bear  the  brunt  of  working  out  new  uses 
for  wood  products.  The  industry  is  still  in  its  in- 
fancy and  the  present  methods  so  crude  and 
backward  that  a  large  part  of  every  tree  is  wasted. 
There  is  today  a  demand  for  many  products  that 
can  be  made  from  this  waste.  This  demand  was 
not  recognized  a  generation  ago  or  the  lumber 
men  of  that  day  would  have  found  the  means  to 
meet  it  by  utilizing  the  parts  of  the  tree  not  now 
used  for  naval  stores,  lumber,  lath  or  shingles. 

The  next  step  forward  in  the  timber  industry 
should  be  the  addition  to  the  present  plants  of 
units  for  making  by-products  from  all  parts  now 
wasted,  thus  making  them  complete  factories — 
factories  that  will  convert  every  part  of  the  tree 
into  useful  articles  of  commerce.  This  step  will 
be  taken  and  these  complete  factories  for  making 
wood  products  will  come  into  existence.  The 
possibilities  for  development  in  the  making  of 
wood  products  are  immense  and  it  is  time  this 
large  industry  was  freed  from  its  handicaps  and 
oppressions  and  permitted  to  develop  into  the 
great  institution  it  is  destined  to  become. 


112 


Attention  is  called  to  the 
announcement  on  page  n 


STATE  AND 

CITY 

SECTION 


Debts  and  Resources 

of 

States,  Cities  and  Towns 

in  the 

Pacific  Coast  States 


STATE  OF  CALIFORNIA. 

ITS 
DEBT,  RESOURCES,  &c. 

Admitted  as  a  State  (Act  of  Sept.  9,  1850) Sept.  9,  1850 

Total  area  of  State  (square  miles) 158,297 

State  Capital  Sacramento 

Governor     (term     expires     1st     Monday     after 

January  1,  1915) Hiram  W.  Johnson 

Secretary   of   State    (term   expires    1st    Monday 

after  January  1,  1915) Frank  C.  Jordan 

Treasurer     (term     expires     1st     Monday     after 

January  1,  1915) Edw.  D.  Roberts 

LEGISLATURE  meets  biennially  in  odd  years  on  the  first  Monday 
after  January  1,  and  sessions  are  not  limited,  though  members  receive 
only.  $1,000  for  each  regular  session  and  $10  for  each  day  while  in 
special  session. 

HISTORY  OF  DEBT. — Commercial  and  Financial  Chronicle.— For 
early  history  of  the  State  debt,  see  "State  and  City  Section"  of  April, 
1894,  page  142. 

Harbor-Improvement  Bonds. 
4s  g  '11  J-J  $8,298,000c.July  2,  1985 
(Subject  to  call  after  July  2,  1950.)  I 
Highway  Bonds. 

(  $5,200,000c.  July  3,  '17-'29 
l,6qq,000c.july  3, '_30:'33 


Civil  War   Bonds  of   1857. 
Int.    ceased    $3,500c 

Civil  War   Bonds  of   1860. 
Int.  ceased         $500c 

Funded  Debt  Bonds. 
6s  g  '73  J-J  $2,277,500c         (») 

Sea  Wall  Bonds. 
4s  '05  )■]  $2,000,000c.Jan.  2,    1924 

(Subject  to  call  after  Jan.  2,  1914.) 


4s'll  J-J 


200,000c 
3,000,000c 
3,000,000c 


.July  3,  1 
.July  3,  'i 
•  July  3,'- 


934 

35-'41 

42-'49 


*Of  which  $1,526,500  held  by  State  School  Fund  and  $751,000  by 
University    fund. 

INTEREST  is  payable  at  the  office  of  the  Treasurer  in  Sacramento, 
and   Bankers  Trust  Co.,  New  York  City. 

TOTAL  DEBT.— The  total  bonded  debt  of  the  State  Sept.  1,  1914, 
was  $25,579,500,  including  $4,000  civil  bonds  on  which  int.  nas  ceased. 
The  warrant  debt  on  that  date  was  $334,465.20.  Cash  in  treasury  on 
March,  20,  1914,  amounted  to  $22,545,783.09.  The  $2,000,000  sea  wall 
bonds  issued  for  San  Francisco  are  not  included  in  the.  total  indebted- 
ness of  the  State;  these  bonds  are  payable  out  of  a  sinking  fund_  re- 
ceiving its  revenue  from  moneys  collected  by  the  San  Francisco 
Harbor  Commissioners. 

The  bonds  of  1873  ($2,277,500)  matured  in  1893.  No  sinking  fund 
having  been  provided  for  their  payment,  they  were  taken  over  by  the 
State  for  its  school  funds  and  have  been  so  held  since  1893. 

The  State  Treasurer  on  Sept.  1,  1914,  held  bonds  aggregating 
$7,563,375  for  the  benefit  of  the  State  School  Fund;  this  includes 
$1,526,500  of  the  funded  debt  bonds  of  1873.  The  State  Treasurer 
also  holds  $3,234,125  for  the  benefit  of  State  funds  other  than  the 
School  Fund.  This  includes  $751,000  of  the  funded  debt  bonds  of  1873 
held   in   trust   for  the  University    Fund   referred   to  above. 

ASSESSED  VALUATION. — The  following  statement  shows  the 
total  assessed  valuation  and  the  tax  rate  (per  $1,000)  for  the  years 
indicated. — decrease  in  1906  caused  by  destruction  of  property  by 
earthquake. 


Years.  Valuation.    Tax  rate. 

1914 $3,202,450,546       

1913 3,114,136,640 

1912 2,920,400,512 

1910 2,471,505,410 

1908 1,991,554,603 

1906 1,595.897,411 

1904 1,545,698,785 


None 

$3.53 
4.00 
4.76 
5.35 


Years.  Valuation.     Tax  rate. 

1902 $1,290,238,964  $3.82 

1900 1,217,648,863  4.98 

1890 1,101,137,290  5.80 

1880 666,399,985  6.40 

1870 277,538,134  8.65 

1860 148,193,540  6.00 

1850 57,670,689  5.00 

•Pursuant  to  Chap.  335,  Laws  of  1911,  carrying  into  effect  Sec.  14 
of  Art.  13  of  the  constitution  as  amended  Nov.  8,  1910  (see  below) 
there  is  now  no  general  tax,  revenue  being  derived  from  the  taxation 
of  public  service  and  other  corporations,  banks  and  insurance  com- 
panies. The  amount  of  tax  placed  upon  these  corporations  by  the 
State  Board  of  Equalization  for  1911  was  $10,454,125.46;  1912,  $10,- 
922,405.72;  1913,  $12,971,541.80;  and  1914,  $13,580,773.44. 
.  CONSTITUTIONAL  AMENDMENTS.— Pursuant  to  a  constitu- 
tional amendment  adopted  Nov.  8,  1910,  the  city  of  San  Francisco 
voted  and  issued  $5,000,000'  bonds,  the  proceeds  to  be  used  by  the 
Panama  Pacific  International  Exposition  Co.  for  an  exposition  to  be 
held  in  San  Francisco  to  celebrate  the  opening  of  the  Panama  Canal. 
Another  amendment,  approved  on  Nov.  8,  1910,  creates  a  State  fund 
of  $5,000,000  for  the  use,  establishment,  maintenance  and  support  of 
the  Panama  Pacific  International  Exposition.  Still  another  amend- 
ment adopted  provides  for  the  separation  of  State  and  local  taxation 
and  for  the  taxation  of  public  service  and  other  corporations  for  the 
benefit  of  the  State.  On  Oct.  10,  1911,  the  voters  adopted  constitu- 
tional amendments  granting  equal  suffrage  to  women,  allowing  the  recall 
of  public  officials,  even  the  judiciary,  and  reserving  to  the  people  the 
powers  of  initiative  and  referendum. 

BOND  PROPOSITIONS. — Propositions  providing  for  the  issuance 
of  $18,000,000  highway,  $1,500,000  San  Diego  sea-wall,  $1,000,000 
India  Basin  and  $9,000,000  harbor-improvement  4%  bonds  for  the 
city  and  county  of  San  Francisco  were  adopted  at  the  general  election 
on  Nov.  8,  1910.  This  latter  issue  was  declared  valid  by  Superior 
Judge  Seawell  on  Feb.  2,  1914.  On  May  23,  1912,  Judge  Seawell  dis- 
missed an  order  to  show  cause  why  an  injunction  should  not  be  issued 
restraining  the  sale  of  the  $1,000,000  4%  India  Basin  bonds.  The  offer- 
ing of  these  bonds,  which  was  to  have  taken  place  July  22,  1912,  was 
indefinitely  postponed. 

DEBT  LIMITATION. — The  limitations  fixed  in  the  constitution  of 
California  with  reference  to  the  creation  of  State  debt,  debts  of 
counties,  cities,   towns,   etc.,  are   as  follows: 

ARTICLE  16.  Section  1.— State  Indebtedness.— The  Legislature 
shall  not  in  any  manner  create  any  debt  or  debts,  liability  or  liabilities, 
which  shall,  singly  or  in  aggregate  with  any  previous  debts  or  liabili- 
ties, exceed  the  sum  of  three  hundred  thousand  dollars,  except  in 
case  of  war  to  repel  invasion  or  suppress  insurrection,  unless  the  same 
shall  be  authorized  by  law  for  some  single  object  or  work  to  be  dis- 
tinctly specified  therein,  which  law  shall  provide  ways  and  means, 
exclusive  of  loans,  for  the  payment  of  the  interest  of  such  debt  or 
liability  as  it  falls  due,  and  also  to  pay  and  discharge  the  principal  of 
such  debt  or  liability  within  seventy-five  years  of  the  time  of  the 
contracting  thereof,  and  shall  be  irrepealable  until  the  principal  and 
interest  thereon  shall  be  paid  and  discharged,  and  such  law  may 
make  provision  for  a  sinking  fund  to  pay  the  principal  of  such  debt 
or  liability  to  commence  at  a  time  after  the  incurring  of  such  debt 
or   liability   of   not    more    than    a   period    of   one-fourth    of   the   time   of 


maturity  of  such  debt  or  liability;  but  no  such  law  shall  take  effect 
until,  at  a  general  election,  it  shall  have  been  submitted  to  the  people 
and  shall  have  received  a  majority  of  all  the  votes  cast  for  and  against 
it  at  such  election ;  and  all  moneys  raised  by  authority  of  such  law 
shall  be  applied  only  to  the  specific  object  therein  stated,  or  to  the 
payment  of  the  debt  thereby  created,  and  such  law  shall  be  published 
in  at  least  one  newspaper  in  each  county,  or  city  and  county,  if  one 
be  published  therein,  throughout  the  State,  for  three  months  next 
preceding  the  election  at  which  it  is  submitted  to  the  people.  The 
Legislature  may  at  any  time  after  the  approval,  of  such  law  by  the 
people,  if  no  debt  shall  have  been  contracted  in  pursuance  thereof, 
repeal  the  same. 

ARTICLE  12.  Section  13.— State  Not  to  Loan  Its  Credit,  &c—  The 
State  shall  not,  in  any  manner,  loan  its  credit,  nor  shall  it  subscribe 
to  or.  be  interested  in  the  stock  of  any  company,  association  or  cor- 
poration. 

ARTICLE  4.  Section  31. — Legislature  Prohibited  from  Loaning 
Credit,  &c,  of  State,  City,  County,  &c. — The  Legislature  shall  have 
no  power  to  give  or  to  lend,  or  to  authorize  the  giving  or  lending  of, 
the  credit  of  the  State,  or  of  any  county,  city  and  county,  city,  town- 
ship or  other  political  corporation  or  sub-division  of  the  State  now 
existing,  or  that  may  be  hereafter  established,  in  aid  of  or  to  any 
person,  association  or  corporation,  whether  municipal  or  otherwise, 
or  to  pledge  the  credit  thereof  in  any  manner  whatever  for  the  pay- 
ment of  the  liabilities  of  any  individual,  association,  municipal  or  other 
corporation  whatever;  nor  shall  it  have  power  to  make  any  gift,  or 
authorize  the  making  of  any  gift,  or  any  public  money  or  thing  of 
value  to  any  individual,  municipal,  or  other  corporation  whatever; 
provided,  that  nothing  in  this  section  shall  prevent  the  Legislature 
granting  aid  pursuant  to  section  twenty-two  of  this  Article;  and  it  shall 
not  have  the  power  to  authorize  the  State  or  any  political  sub-division 
thereof  to  subscribe  for  stock  or  to  become  a  stockholder  in  any 
corporation   whatever. 

The  exception  provided  in  Section  22  of  Article  4  (refererd  to  in  the 
last  clause  of  the  above)  permits  merely  the  granting  of  aid  by  the 
State  and  by  cities,  &c,  to  institutions  for  the  support  and  main- 
tenance of  minor  orphans,  or  half-orphans,  or  abandoned  children,  or 
aged  persons  in  indigent  circumstances.  By  an  amendment  adopted 
Nov.  8,  1910,  further  provision  is  made  for  creating  a  fund  of  $5,000,000 
for  the  use,  establishment,  maintenance  and  support  of  the  Panama 
Pacific  International  Exposition.  See  constitutional  amendments  given 
in  preceding  column. 

ARTICLE  11.  Section  18. — Counties,  Cities  and  Towns,  &c,  Debt 
Restrictions. — No  county,  city,  town,  township,  board  of  education  or 
school  district  shall  incur  any  indebtedness  or  liability,  in  any  manner, 
or  for  any  purpose,  exceeding  in  any  year  the  income  and  revenue 
provided  for  it  for  such  year,  without  the  assent  of  two-thirds  of  the 
qualified  electors  thereof  voting  at  an  election  to  be  held  for  that 
purpose,  nor  unless,  before  or  at  the  time  of  incurring  such  indebted- 
ness, provision  shall  be  made  for  the  collection  of  an.  annual  tax 
sufficient  to  pay  the  interest  on  such  indebtedness  as  it  falls  due, 
and  also  provision  to  constitute  a  sinking  fund  for  the  payment  of  the 
principal  thereof  on  or  before  maturity,  which  shall  not  exceed  forty 
rears  from  the  time  of  contracting  the  same;  provided,  however, 
that  the  City  and  County  of  San  Francisco  may  at  any  time  pay  the 
unpaid  claims,  with  interest  thereon  at  the  rate  of  five  per  cent  per 
annum,  for  materials  furnished  to  and  work  done  for  said  city  and 
county  during  the  forty-first,  forty-second,  forty-third,  forty-fourth  and 
fiftieth  fiscal  years,  and  for  unpaid  teachers'  salaries  for  the  fiftieth 
fiscal  year,  out  of  the  income  and  revenue  of  any  succeeding  year 
or  years,  the  amount  to  be  paid  in  full  of  said  claims  not  to  exceed 
in  the  aggregate  the  sum  of  five  hundred  thousand  dollars,  and  that 
no  statute  of  limitations  shall  apply  in  any  manner  to  these  claims; 
and  provided,  further,  that  the  City  of  Vallejo,  of  Solano  County, 
may  pay  its  existing  indebtedness  incurred  in  the  construction  of  its 
water-works  whenever  two-thirds  of  the  electors  thereof  voting  at  an 
election  held  for  that  purpose  shall  so  decide,  and  that  no  statute  of 
limitations  shall  apply  in  any  manner.  Any  indebtedness  or  liability 
incurred  contrary  to  this  provision,  with  the  exceptions  hereinbefore 
recited  shall  be  void. 

The  Citv  and  County  of  San  Francisco,  the  City  of  San  Jose  and 
the  Town  of  Santa  Clara  may  make  provision  for  a  sinking  fund,  to 
pay  the  principal  of  any  indebtedness  incurred,  or  to  be  hereafter 
incurred,  by  it,  to  commence  at  a  time  after  the  incurring  of  such 
indebtedness  of  not  more  than  a  period  of  one-fourth  of  the  time 
of  maturity  of  such  indebtedness,  which  shall  not  exceed  seventy-five 
years  from  the  time  of  contracting  the  same.  Any  indebtedness  in- 
curred contrary  to  any  provision  of  this  section   shall  be  void. 

COUNTY  DEBT  RESTRICTIONS. — By  a  State  law  passed  March 
24,  1893,  all  counties  are  restricted  to  the  issuance  of  bonds  running 
not  longer  than  twenty  years. 

A  new  law  regulating  indebtedness  for  public  improvements  was 
enacted  in  1901.  Section  4  of  this  law  establishes  a  limit  for  such 
indebtedness,   and   is  as  follows: 

LIMIT   OF   INDEBTEDNESS. 
SECTION    4.     No   city,   town   or   municipal   corporation   shall    incur 
an  indebtedness  for  public  improvements  which   shall  in  the  aggregate 
exceed   15%  of  the  assessed  value  of  all  the  real  and  personal  property 
of  such  citv.  town  or  municipal  corporation. 

TAX  EXEMPT  AMENDMENT.— At  the  November  1902  election 
the  follownig  amendment  to  Article  13  of  the  State  constitution  was 
favorablv  voted  upon.  .  „  ,. 

SECTION  1?4.  All  bonds  hereafter  issued  by  the  State  of  Cali- 
fornia, or  by  any  county,  city  and  county,. municipal  corporation. or 
district  (including  school,  reclamation  and  irrigation  districts)  within 
said  State  shall  be  free  and  exempt  from  taxation 

MORTGAGES  EXEMPT  FROM  TAXATION.— Among  the 
amendments  voted  Nov.  8,  1910,  is  one  repealing  Section  4  of  Article 
13  of  the  State  constitution,  changing  Section  1  so  that  hereafter  a 
mortgage  deed  of  trust,  &c.,  together  with  the  money  represented  by 
such   debt,   shall   be  exempt   from   taxation.  ™,recTMlrHT5_ 

IRRIGATION  BONDS  AS  SAVINGS  BANK  INVESTMENTS  — 
The  legislature  in  1911  passed  an  Act  (Chapter  157,  Laws  1911) 
allowing  investment  by   savings  banks  in  bonds  of  irrigation  districts. 

ufo^^TEK  STf  JoES;r30|,870 560.2471,850 92,597 

1900'..::1,485:053|1S80....    864,694|1860;..v .379  9941 

The  number  of  Chinese  in  the  population  in  1900  was  45,753,  72,74^! 
in  1890  and  75,132  in  1880. 

CITIES.  COUNTIES  AND  TOWNS  IN  THE 
STATE    OF    CALIFORNIA. 

Many  of  the  counties  in  this  State  levy  a  special  tax  on  property 
outside  incorporated  cities  and  towns  for  .  making  repairing  and 
sprinkling  of  roads,  and  the  tax  rate  as  given  below  under  these 
counties  is  made  up  of  the  State  tax  rate  and  the  county  tax  rate 
including  special  road  tax. 


(.Compiled  by  the  Commercial  and  Financial  Chronicle.) 


CALIFORNIA  CITIES  AND  TOWNS 


115 


ALAMEDA. 

This  city  is  in  Alameda  County.  City  was 
incorporated  1854 ;  re-incorporated  1872.  Spe- 
cial charter  adopted  April,  1907.  For  pro- 
posed purchase  of  certain  water  properties, 
Population    1910,  23,382. 

City   Hall. 
5s       '94     J-D    $  26,250c Dec  1  M4'34 

School. 

Ss        '94     J-D   $  21,525c Dec  1  M4-'34 

4s       '01     i-D       70,000c Dec   1   M4-'41 

4J^s    '10     J-D      135,600 June  1  '15-'50 

Municipal   Improvement   Bonds. 
4'As  '08     A-O   $259,250c Apr   1    M5-M8 

Electric  Light  &  Police  Department  Bonds. 
5s  '12     M-N  $150,100 Nov  1  M5-'52 

Sewer    Bonds. 

4J4s    '10      I-D     $26,400 June  1  '15-'50 

BOND   DEBT  Apr   1914 $693,075 

Assessed  valuation  '13  (657o  act.).  .$20,971,561 
City  tax  rate  (per  $1,000)  '13 $10.30 

INTEREST   payable   at    City   Treas.    office. 

ALAMEDA  CO.  UN.  H.  S.  D.  NO.  3. 

Building  Bonds. 

5s  g  '12  J-D  $80,000c June   1   '18-'47 

BONDED    DEBT   Nov    1913 $      80.000 

Assessed  valuation  '12   (3-5  act) 7,449,900 

Population    in    1912    (estimated) 5,000 

INTEREST  payable  at  County  Treasurer's 
office  in  Oakland. 

ALAMEDA  CO.  UN.  H.  S.  D.  NO.  4. 

High-School  Building  Bonds. 

5«  '06  J-J  $79,858 1914-1926 

Assessed   valuation   '12    (3-5   act) .  .$17,490,027 

INTEREST  at  County  Treasurer's  office. 

ARMIJO    UNION    HIGH    S.    D. 

A  district   in   Solano  County. 

Building   Bonds   (Tax-free). 

5s   '13   J-J  $70,000c Julv    I   M4-'49 

BONDED    DEBT    Mar    1914 $      70.000 

Assessed  valuation  '13  (60%  act.)..  4,272,867 

School  tax  (per  $1,000)   1913 3.80 

Population   in    1914    (estimated) 4,380 

INTEREST   at   Treasurer's    office. 


BAKERSPIELD. 

This  city  is  in  Kern  County.  Incorporated 
Jan.  11,  1898.  Town  of  Kern  annexed  July 
19,    1910.      Population    1910    12.729. 

Improvement   Bonds. 
4s    '04 $23,000c Pt    yly    July    1 

Fire-Department   Bonds. 
5s  '12     A-O  $57,000 Oct  1  M5'52 

Library  Bonds. 
5s  '12     A-O  $26,650 Oct  1  '15-'52 

Sewer  Bonds. 

4'Asg  '07  M-N  $  99,000 May  1  M5-M7 

5s         '12    A-O      204,225 Oct    1  M5-'52 

5s         '12   15,200 Oct    1  M5'52 

City-Hall    Bonds. 
5s  '12    AO    $145,875 Oct  1  M5-'52 

School  Bonds. 

4!4s  $30,000 Part   yly   July    1 

BONDED    DEBT    Mar    1914 $    606,425 

A-^,vsed  valuation  '13   ('A  act.) 7,885.000 

Total  tax   (per  $1,000)    1913 19.00 

INTEREST   payable  at   City   Treas.    office. 


BAKERSFIELD   SCHOOL   DISTRICT. 

Building  Bonds. 

S'As  '14 $40,000 1918-1927 

BONDED  DEBT  July  1914 $    231,000 

Assessed  val.  '13   (abt  3/5  act.) 8,852,594 

BERKELEY. 

This    city    is    in    Alameda    County.       Incor- 
porated   April,    1878.      New    charter    adopted 
March      5,    1895.         Commission      government 
adopted  July   I,  1909. 
Sewer  and  Fire  Equipment. 
5s   '13  J-J    $555,OOOc July  15*51 

School   Bonds. 
4}4s  '00  J-J  $65,OOOc July   10  M5'40 

Munic.    Improvement   Bonds    (Tax   exempt). 


4'As'g  FA  $245,932.50 
BONDED  DEBT  Sept  21 


. .  .Feb  l  'l5-'47 
,    14....$      865,933 

Sinking  funds    5,938 

Assessed  valuation  '14-' 15 42,706,510 

Total  tax  (per  $1,000)  M2-M3 24.10 

Population    in    1910    (Census) 40,434 

INTEREST  on  fire-equipment  and  sewer 
bonds  at  office  of  City  Treasurer  or  at  N.  \Y. 
Halsey  &  Co..  N.  V. ;  other  bonds  at  City 
Treasurer's  office. 


BERKELEY    SCHOOL    DISTRICT. 
4'As    '06    J.    J.    $118,500. 
4'As    '07    J.    J.       186,750. 
4/2s    " 
4'As 

BONDED  DEBT  June  30  '14 $562,700 

INTEREST  payable  at  County  Treasurer's 
office. 


Is    '07    J.    J.        82,450 

Is    '08    J.   j.      175,000 

1NDED  DEBT  June  30  '14. 


BRAWLEY  UNION   HIGH  S.  D. 
A   district   in    Imperial   County. 

5s    '13 $50,000 1933 

TOTAL   DEBT  Oct   14  '14 $      50,000 

Assessed   valuation    '14 4,286,669 

School  tax  rate  (per  $1,000)  '14 6.00 


CENTRAL  UNION   HIGH   S.  D. 

A   district    (P.    O.    El    Centrol    in    Imperial 
County.     Population  '14  (estimated)  8,000. 

Building    Bonds. 

5s  '11  J-J  $75,000 1927-1951 

7s  J-J     15.000r 1914-1919 

BONDED  DEBT  Oct.  '14 $      90,000 

Sinking  fund  Mar.  24  '14 10,000 

Assessed   valuation  '13   (3-5  act.)...  6,500,000 
High  school  tax  (per  $1,000)  "14 3.40 

INTEREST  payable  at  County  Treas.  office. 

CHAFFEE  UN.    HIGH    SCHOOL   DIST. 

A  district   in   San    Bernardino   County. 

Building   Bonds. 

5s  g  '11    Sept   $100,000 Sept    11   '17-'S1 

Ss  g  Ml   Sept     100,000 Sept     1  "20-'51 


BONDED   DEBT   Mar    1913 $      200,000 

Assessed    valuation    1912 5,458,439 

Real  valuation   (estimated) 12,000,000 

INTEREST   at    County   Treas.   office. 

CHICO. 

This  city   is  in   Butte   County. 

Sewer    Bonds. 
5s  '02  J-J     $31, 500c Jan  1  '15-'42 

Municipal    Improvement   Bonds. 

5s  '10  J-J  $l38,750c July   1   M4'50 

BONDED    DEBT    Oct   31    '13 $    171,375 

Assessed    valuation    '13 3,004,003 

Tax  rate  (per  $1,000)  M2-M3 15,50 

Population    in    1910    3,750 

INTEREST  at  office  of  City  Treasurer. 

CHICO  GRAMMAR  SCHOOL  DIST. 

4s     $5,000 

Building    Bonds. 

5s    '13     $47,000 1915-1938 

TOTAL  DEBT  Sept  '14 $57,500 

Assessed  valuation  '13   ('A  act.) 5,130,000 

Population  in  1914   (est.) 14,000 

COLTON 

This  city  is  in  San  Bernardino  County. 

Water    Bonds. 

6s    '85      J-J      $33,600c 1925 

6s    '99      J-J         12,500c 1939 

Electric-Light  Bonds. 
6s    '96      J-J        $3,300c 1936 

Refunding    Bonds. 
6s    '01       J-J         $3,800c 1941 

Sewer    Bonds. 

5s    '10     J-J      $57,000c 1941 

BONDED  DEBT  Apr  22  '14 $    110,200 

Assessed   valuation    '13-'14    ('A    act)  2,105,965 
Value   of   corporative    and    operative 

property     (additional) 695,610 

Total  tax  rate    (per  $1,000)    '13 33.35 

Population    in    1910    (Census) 4,852 

INTEREST    payable    at    First    Nat.    Bank, 
Colton,  or  at  Colton  Nat.   Bank. 

COLUSA  COUNTY. 

Colusa  is  the  county  seat. 

Hall  of  Records  Bonds. 
5sg'14  J-D  $60,000c yly    on    June    15 

Bridge  and   Culverts  Bonds. 

5s  R '14  J-D  $140,000c yly    on    June    15 

BONDED   DEBT  Apr  '14 $      452,000 

Assessed  valuation 14,150,781 

Population  in   1910 7,732 


CONTRA   COSTA   COUNTY. 

Martinez    is    the    county    seat.      Bonds    are 
tax-exempt.      Population,    1910,    31,674. 

Court-House   and  Jail   Bonds. 

4s  g  '03     J-J     $161.000c 1943 

BONDED  DEBT  May  1  '14 $      161,000 

Assessed   valuation   '13    ('A    act.)..  47,731,341 
State    &    County    tax  (  Inside    12.00 

(per       1,000       1913  (Outside '16.00 

INTEREST    payable    at    County    Treasury. 

CORONA. 

This  city  is  in  Riverside  Countv.     Incorpo- 
rated July   19,   1896.     Population,    1910,  3,550. 

Sewer   Bonds. 
5sk'09  A-O    $26,250c Aug  1  '15-'49 

Street    Bonds. 

5sg'09  A-O     $  12,687.50c Aug  1  M5-'49 

5sg'12 130,625c      Jan  1  '15-'52 

Drainage   Bonds. 
5s  g  '09  A-O    $79,625c Aug  1  '15-'49 

Municipal    Improvement    Bonds. 

4'As   &   5!4s   Ml      $95,950 1915-1952 

BONDED   DEBT  Sept    1   '14 $    249,188 

Assessed  valuation  '14  (2-5  act.) 4,021,500 

Total   tax   rate   (per   $1,000)    '14 38.60 

INTEREST   payable   at    City   Treas.   office. 


CORONADO. 

This  city  is  in  San  Diego  County.  Incor- 
porated   1890.      Population,    1910,    1,477. 

Seawall   Bonds. 
F-A   $108,000 

Seawall  and  Street  Improvement. 

A-O  $143,000 

Sewer  and   Fire   Improvement. 

FA     $42.550 

BONDED  DEBT  Apr  M4 $    293,500 

Assessed  valuation  '14  (<A  act.) 3,372,276 

City    tax    rate    (per    $1,000)    '14 18.70 

INTEREST   Payable  at    City   Treas.   office. 

CORONADO    SCHOOL    DISTRICT. 

Building  Bonds. 

5»  '12  July  $80.000c 1915-1934 

BONDED    DEBT    Sept    1    '14 80,000 

Sinking    fund     7,516 

Assessed    val.    '14    (abt.    35%    act.).    2,461,861 
School   tax    rate    (per  $1,000   '14)...  13.80 

Population    in    1914    (cstimatedl 4.500 

INTEREST    at    County    Treasurer's    office. 

DIXON. 

This  town  is  in  Solano  County.  Incorpo- 
rated in  1878;  re-incorporated  in  1884.  Popu- 
lation, 10,827. 

Sewer   Bonds    (tax    free). 

5s  Ml     J-D     SJS.OOO $1,000  yearly 

BONDED   DEBT  Mar  1   '14 $  38.000 

Assessed   valuation    '13    (Yt    act.) 625,750 

City  tax  rate  (per  $1,000)  M3 13.50 

INTEREST  payable  at   Bank  of  Dixon. 

EL   CENTRO. 

This  city  is  in  Imperial  County.  Incorpo- 
rated  April    16,    1908. 

Municipal   Improvement   Bonds. 

5tfs     J-J     150,000c July  2  '23-'42 

BONDED  DEBT  Sept  21  M4 $    149,000 

Assessed  valuation   '14   (fi  act.) 3,404,815 

City  tax  rate  (per  $1,000)   "14 13.60 

Population    in    1910 1,610 


TOT.  BONDED  DEBT  Jan  1  '14.. $    149.000 

Assessed  valuation   '13    ('A  act.) 2,308,919 

EL  DORADO  COUNTY. 

Placerville  is  the  county  seat. 

Court-House  Bonds. 
5s  aim  $120.000 1946 

(Maturity     1-30    yearly    after    5th    year.) 

BONDED  DEBT  Mar  M4 $    120,000 

Assessed    valuation     1913 6,954,117 

State    &    Co.    tax    rate)  Inside 17.00 

(per  $1,000)    1913...  (Outside   ...  21.00 

Population   in    1910    7,492 

INTEREST  payable  at  County  Treas.  office. 


EUREKA. 

This  city  is  in  Humboldt  County.  Incorpo- 
rated Feb.  10,  1874.  All  bonds  :,re  exempt 
from  taxation.  Commission  government  de- 
feated Dec.  4,  1911.     Population,  1910,  11,845. 

•City    Hall    Bonds. 
4'As  semi-an     $77,5COc 

*Sewer  Completion  Bonds. 

4'As  semi-an  *|27,125c 

4  'A  s  semi-an     §61 ,625c 

*Fire   Apparatus    Bonds. 
4'A s  semi-an     $1 1,625c.  .. : 

•Park    Bonds. 
4'As  semi-an       $3, 875c 

x-Third  Ward  School   Bonds. 
4'As  semi-an     $10,875c 

Fifth   Ward  School    Bonds. 

4'As  semi-an     $10,875c 

•Part  yearly  on  July   15.     8Part  yearly  April 

Water  Works  Bonds. 

5s   '14     J-J      $270,000 July  15  '24-'S3 

BONDED   DEBT  Mar   20  '14 $    203,500 

Assessed    valuation    '13    (2-5    act.) .  .x8,889,076 
Total    tax    (per    $1,000)    '13 30.70 

x  Including  $712,839  operating  property 
taxed    only    by    State. 

INTEREST   payable   at    City   Treas.    office. 

EUREKA    HIGH    SCHOOL    DIST. 

Building  Bonds. 

5sg_M3    A-O    $150,000 Oct  1  M8'53 

TOTAL  DEBT  Apr  24  '14 $    150,000 

Assessed    valuation    '14 6,979,564 

INT.  at  Co.  Treas.  office  in  Eureka. 


FRESNO. 

County  seat  of  Fresno  County.  Incorporat- 
ed Oct.  27,  1885.  Commission  government 
defeated   July   26,    1912. 

City    Hall.' 
4^s '06       J-J     61,000c 1914-1943 

Sewer. 

5s  g  J-J     $21,000c July  1  *15-'3S 

4^s  '06       J-J     143,500c 1914-1945 

Playground   Site  Bonds. 
4'As  J-D     $54,000c 1940 

Convention  Hall  Bonds. 

5s  '12  F-A     $42,000 Aug  15  M5'42 

TOTAL    DEBT   April    M4 $      311.500 

Assessed  valuation  M3  (3-5  acct.)..  20,842,966 

City   tax    rate    (per   $1,000)    '13 11.40 

Population    in    1910 24.892 

INTEREST   payable  at    City   Treas.   office. 


FRESNO  CITY  SCHOOL  DISTRICT. 

5s  $40,000c June    6M5-'22 

5s  g  '09  June     150,000c June  12  M5-'34 

5s  g  '14    A-O     200,000c 1920-1936 

BONDED  DEBT  Sept.  22  '14 $      390,000 

Assessed  valuation  '14  ('A  acct.)..  24,114.513 
School  tax  rate  (per  $1,000)  '14...  9.00 

Population  in   1912   (est.) 40,000 

INTEREST  at  County  Treasurer's  office. 
FULLERTON. 

This  city  is  in  Orange  County. 

Water  Works  Bonds. 

5s  '12  A-O $80,000      

6s  J-D 12,000     Part  yearly 

Paving   Bonds. 
6s    $16,000     Part  yearly 

Road  Bonds. 

5s,    '12    A-O $132,000 

TOTAL  DEBT  Oct   10  '14 240,000 

Assessed   valuation    '13 2,615,545 

Population  in   1.910 1,725 


FULLERTON     UN.     HIGH     S.     D. 

Building    Bonds. 

5s  '06  $20,000c 1926 

($2,000    due    annually.) 

5«  JJ       50,000c 1914-1938 

5s  J-D      130,000c 1916-1941 

TOTAL  DEBT  Sept.  '14 $200,000 

Assessed  valuation   '13    {'A   acct.) 9,250,000 

School  tax   (per  $1,000)   1913 $0.63 

INTEREST    at    County    Treasurer's    office. 


EL   CENTRO    SCHOOL    DISTRICT. 
6s  g   '13  J-D  $30,000 1918-1947 


GLENDALE. 

A    city    in    Los    Alleles    County.       Incor- 
porated Feb.,  1906.     Of  the  water  bonds  given 
below   $114,000   had   been    sold   up   to  date  of 
statement. 
Municipal  Water  Bonds. .  .$248,000 

Electric-Light   Bonds. 

5s  '09     J-J       $54,O00c     1949 

5s  M2     M-S       40,000c March    1    '30-'34 

Fire    Department   Bonds. 

6s  '07     MS     $  4.250c    1947 

5s  M3     J-J         19,500 Jan  1  M5-'S2 

City  Hall  and  Library   Bonds. 
Ss  Ml     J-J       $16,500c    1935 

Street   Bonds. 

5s  M3     J-J         $4.500 Jan    1    M5'23 

BONDED   DEBT  act.   '14 $385,125 

Assessed   valuation   '14    (2-5   act.)..      4,354,000 

City   tax  rate  (per  $1,000)   '13 12.30 

Population    in    1910 2,746 

INTEREST  payable  at  City  Treas.  office. 

GLENDALE   SCHOOL    DISTRICT. 
BONDED  DEBT  July  1  1J $88,000 


GLENDALE   UNION   HIGH    S.   D. 
TOTAL  DEBT  July  1  M3 $56,000 


(Compiled  by  the  Commercial  and  Financial  Chronicle.) 


116 


CALIFORNIA  CITIES  AND  TOWNS 


GLENN  COUNTY. 

Willow  is  the  county  seat. 

Road  and  Bridge  Bonds. 

Ss  g  '11     M-N     $450,OOOc Nov   1  '21-'50 

TOTAL  DEBT  Oct  '14 $      450,000 

Assessed  valuation   '14 17,576,399 

State  &  Co.  tax  rate   S  Outside 15.00 

(per  $1,000)   '14         I  Inside    19,00 

Population    in    1910 7,172 

INTEREST  payable  at  County  Treas.  office. 

HANFORD    SCHOOL   DISTRICT. 

6s    g    '12 $32,000 Oct9'lS-'30 

TOTAL  DEBT  May  '13 $43,000 


HAYWARDS    UNION    HIGH    S.    D. 

A  district  in  Alameda  County. 

Building  Bonds. 

5s   '12  J-J     $80,000 1922-1932 

BONDED  DEBT  Sept  '14 $        80,000 

Assessed   valuation   '13    (1-3   act.)..      8,000,000 
School  tax  rate  (per  $1,000)   '13...  2.50 

Population  in  1913  (est.) 7,000 

INT.  at  County  Treas.  office  in  Oakland. 

HESTER    SCHOOL   DISTRICT. 

A  district   in    Santa   Clara   County. 

Building  Bonds  (Tax-Exempt). 

5s  $8,000 April    1    1917 

5s  '12     F-A     74,000c   1915-1952 

BONDED  DEBT  April  '14 $        82,000 

Assessed  valuation   '13 2,221,065 

School  tax  rate  (per  $1,000)  '13 3.80 

INTEREST  payable  at  County  Treasurer's 
office  in  San  Jose. 


HILLSBOROUGH. 

This  city  is  in  San  Mateo  County.  Bonds 
are  tax-free  in  California.  Incorporated  May 
5,  1910. 

Street  and    Fire    Department   Bonds. 

5s  g  '12     A-O     $117,000c 1915-1922 

TOTAL  DEBT  Sept  21  '14 $      117,000 

Assessed   valuation   '14 2,688,380 

(Assessment    1-5    to    14    actual    value.) 
Total  tax  (per  $1,000)   '14  (est.)..  30.70 

Population   in    1914    (est.) 900 

INTEREST  payable  at  City  Treasurer's 
office,  Mercantile  Tr.   Co.,  San  Francisco. 

IMPERIAL. 

This  city  is  in  Imperial  County.  Incor- 
porated  August,    1904.      Pop'n    1910,    1,257. 

Water  Bonds. 

6s  '09    J-J     $50,000 

(Payable  annually  beginning  in  1919.) 

Sewer  and  City-Hall  Bonds. 
6s  '10       J-J     $44,000 $1,500  yearly 

Sewer   Bonds. 

6s  '11    M-S     $25,000 $1,000  yearly 

BONDED  DEBT  Sept  1  '14 $      119,000 

Assessed  valuation  '14   (65%   act.).     1,406,711 
Total  tax  rate  (per  $1,000)   '13 18.00 


KERN    COUNTY. 

County  seat   is   Bakerstield. 

Refunding  Bonds. 
4'As  '97     J-J       $90,000c 1915-1917 

Court-House  Bonds. 
4'As  '09  M-S     $400,000c 1919-1928 

Highway  Bonds. 

5s  '13  M-S     $500,000c Sept  1  '19-'38 

BONDED  DEBT  April  '14 $      520,000 

Assessed  valuation  '13    CA  act.)...  80,529,757 
State  &  Co.  tax  rate   (  Inside     ....  9.00 

(per  $1,000)  (  Outside 12.50 

Population    in    1910 37,715 

INTEREST  on  refunding  bonds  payable  at 
State  Treasurer's  office  and  on  court-house 
bonds  at  County  Treasurer's  office. 

LODI. 

This  city  is  in  San  Joaquin  County.  Inc. 
in  November,   1906.     Population   1910,  2,697. 

Sewer   Bonds. 
5s  '08    J-J    $41,666c July  1  '14-'38 

Light  and  Water  Bonds. 

5s  '08    J-J    $63,334c July  1  '14-'38 

BONDED  DEBT  June  30  '14 $    105,000 

Assessed  valuation  '14   ('A   act.) 2,019,165 

Total  tax  (per  $1,000)  '13.. 33.70 

INTEREST  at  First  National  Bank,  Lodi. 


LODI  UNION   HIGH   SCH.   DIST. 

6sg'12     F-A     $141,000 1915-1937 

TOTAL  BOND  DT.  April  '14 $    141,000 

Assessed   valuation    '13 6,191,635 

INTEREST  payable  at  County  Treasurer's 
office  or  in  New  York  City. 


LONG    BEACH. 

This  city  is  in  Los  Angeles  County.     Incor- 
porated city  of  first  class  January  6,   1908. 

City-Hall   Bonds. 
Ss   '99 $  5,625 1939 

Park   Bonds. 
Ss   '99 $  2,968.75 1939 

Bath-House  Bonds. 
5s  '99 $  2,500 1939 

Wharf  Bonds. 
Ss    '01 $  4,460 1941 

Pier  Bonds. 

5s   '03 $75,000 1943 

5s    '06 8,000 1922 

Sewer  Bonds. 

5s   '03 $25,375 1943 

5s  g  '14  J.  J.  340,000c Jan  1  '15-'54 

Public-Hall  Bonds. 
5s   '05 $22,000 1935 

Fire-Apparatus   Bonds. 
5s  '05 $22,000 1935 

Water  Bonds. 

4'As   '09 $220,500 1949 

...s   '14 200,000 

Water-Plant-Purchase  Bonds. 

4'As  '11 $850,000 July  1  '17-'50 

BONDED  DEBT  April  '14 $  1,238,429 

Assessment    debt    (add'l) 445,000 

Assessed  valuation  '13-'14  ('A  act.)  29,170,797 
Oper.  exp.  banks  (add'l) 2,458,515 


City  tax  rate   (per  $1,000)   '13 14.00 

Population    in    1910 17,805 

INTEREST  on  bonds  of  1914  at  City  Treas. 
office;    others   at    Nat.    Bank   of   Long    Beach. 


LONG    BEACH    CITY    SCH.    DIST. 

5s   '08 $43,000 1918 

Site-Purchasing   and    Building   Bonds. 

4^s  g  '12 $100,000 

5s  30,000 

BONDED  DEBT  July  1  '13 $      125,000 

Assessed  valuation   '13 21,274,695 

INTEREST  at  County  Treasurer's  office. 


LONG    BEACH    HIGH    SCH.    DIST. 

5s  g  '10    A-O    $216,000 April  25  '15-'50 

BONDED  DEBT  July  1  '13 $222,000 

INTEREST  payable  at  County  Treas.  office. 


LOS  ANGELES. 

County  seat  of  Los  Angeles  County.  Com- 
mission government  rejected  Dec.  3,  1912.  All 
bonds  are  exempt  from  taxation  in  California. 
City  founded  in  1781 ;  incorporated  in  1850. 
In  August,  1909,  voted  to  consolidate  with  the 
city  of  Wilmington  and  with  the  city  of  San 
Pedro.  Early  in  1910  city  of  Hollywood  was 
consolidated.  In  the  same  year  and  in  the 
year  1912  additional  territory  was  annexed, 
making  present  area  of  city  107.62  square 
miles.  Superior  Court  on  Aug.  31,  1914,  up- 
held validity  of  $6,500,000  power  bonds  voted 
May  8,  1914. 

Bridge  Bonds. 

4s      '98      J-J     $13,800c July   1  '15-'39 

3^s'03     J-D       72,500c June  1  '15-'43 

Detention  Hospital  Bonds. 
3Ks'04     J-D     $37,500c June    1    '15-'44 

Fire   Department   Bonds. 
4s      '98      J-J     $90,000c June    1    '15-'39 

Impounding  Reservoir   Bonds. 
3Ms"04     J-D     $112,500c June    1    '15-'44 

Main  and  Lateral  Sewer  Bonds. 
4s  g  '06      J-J     $234,000c July  2  '15-'46 

Park  Bonds. 
4s     '98     F-A     $6,000c Aug  '1 5'39 

Outfall   Sewer  Bonds. 
3^s'03     J-D     $725,000 June'15-'43 

School  Improvement. 
4J4s'95      J-J     $160,650c July   1  '15-'35 

Refunding  Bonds. 
4s  g  '97     J-D     $155,250c July  1   '15*37 

Polytechnic  High  School. 
3J4s'03     J-D     $14S,0O0c June    1    '15-'43 

Police  Station   Bonds. 
4^s'95      J-J     $21, 000c July    1    '15-'35 

Tunnel  Bonds. 
4s      '98    F-A     $96,000c Aug  1  '15-'38 

Storm  Drain  Bonds. 
3Ks'03     J-D     $290,000c June    '15-'43 

Public  School. 
3Ms'03     J-D     $348,000c June    1   '15-'43 

Water   Works   Bonds. 

4'As'95      J-J     $      15,750c July    1    '15-'3S 

4s  g  '05  M-N       1,200,000c Nov   1   '14-'45 

35is'01     A-O       1,400,000c Oct  1  '14-'41 

3^s'04     J-D  213,000c Junel'15-'31 

Franklin  Canyon  Line  Water  Bonds. 
4"4s'13  M-N     $1,450, 000c May  1  '15-'43 

Owens  River  Bonds. 

4s      '07     J-D     $  1,033,600c Dec  31  '14'47 

4'As'07     J-D       21,964,000c Dec  31  '14-'47 

Harbor-Improvement    Bonds. 

4"/Ss'll     J-D     $2,225,000 Junel'15-'51 

4<As'13  M-N        1,665,000 May    1    '53 

Electric-Light-Plant   Bonds. 
4!4s'll     J-D     $3,500,000 June  1  '17-'51 

Hollywood   (annexed) — 

5s      '05 $  6,000c July  1  '15'20 

5s      '06 1.000c Sept  1  '15'16 

5s      '07 9.000c Dec    1    '14-*22 

4'As '07 56,000c July   1   '15-'22 

San   Pedro   (annexed) — 

5s      '04 $16, 500c Nov   1   '14-'24 

5s      '06 26,000c Nov   1   '14-'26 

Wilmington   (annexed) — 

5s      '08  M-N     $85,000c May    1    *15-'48 

BONDED   DEBT   Sept  22   '14...$  37,923,050 
Sinking  (  Owens  Riv  bonds 3,454,836 

funds  (  Electric-plant    bonds 259,758 

Water  bonds  '13 3,295 

Assessed  valuation,  real 355,785,785 

Assessed  valuation,   personal 60,078,125 

Assessed  valuation  oper.  prop 92,382,700 

Total     assessed     valuation       14-'15 

(•A   actual)    508,246,610 

City  tax    (per  $1,000)    '14-'15 16.00 

Population  in   1910  (Census) 319,198 

Population  in  1914  (est.) 575,000 

INTEREST  on  the  Owens  River  bonds, 
outfall  sewer  bonds  of  1892,  school  bonds, 
police  station  bonds  and  water  bonds  of  1895 
is  payable  at  the  office  of  Kountze  Bros.,  New 
York ;  on  power  and  harbor  bonds  at  Speyer 
&  Co.,  New  York;  on  all  others  at  office  of 
City  Treasurer. 

DEBT  LIMITATION.— The  revised  city 
charter  limits  its  debt  to  3%  of  the  assessed 
value  of  all  taxable  real  and  personal  property 
within  the  city  for  all  purposes,  except  water, 
gas,  electric  light,  and  power  wharves,  docks, 
piers,  warehouses,  etc.,  on  water  front,  harbor 
improvements,  and  for  any  revenue-producing 
public  utility.  For  any  or  all  of  these  pur- 
poses a  further  indebtedness  may  be  incurred 
not  exceeding  12%   of  such  assessed  value. 


LOS    ANGELES    CITY    SCH.    DIST. 

4s  '06 $    416,000 Jan  1  '15- 

4s  '09 175,000 April   1   '15- 

4"4sg'll  M-S  ..    1,102,000 Sept  1  '14- 

American  S.   D.  Bonds  (Assumed). 

5s      '09 $2,000 May   17  '15 

4'As  '09 1,200 July  26  '20- 

Annandale  S.  D.  Bonds  (Assumed). 

5s      '09 $11,000 Mar  22  '15- 

5s      '07 16,000 Aug  5   '15 

Belvedere  S.  D.  (Assumed). 

5s      '06 $  3,600 Mar  26  '15- 

4'As'lO 31,000 Jan  3  '15- 


15-'38 
15-'25 


15'36 
20-'44 


'15'24 

'25-'29 
'33-'4S 


15-'23 
15-'20 


5s      '08 24,000 May  4 

4J4s'12 11,000 April    1 

Cahuenga  Sch.   Bonds   (Assumed). 

5s      '04 $22,000 June  7 

4>4s  '09 25,000 June  28 

Coldwater  Sch.   Bonds  (Assumed). 
5s      '06 $1,000 June  25  '15-'16 

Colegrove  S.  D.  (Assumed). 
4J4s'09 $13,000 Sept  7  '15-'27 

Gardena  School  Bonds  (Assumed). 
5s      '04 $1,000 Sept  26  '15-'16 

Hollywood  Sch.  Bonds  (Assumed). 

5s      '04 $38,000 May  23  '15-'43 

5s,    '05 5,000 Aug  22  '15 

4As  '09 29,000 Dec  6  '15-'43 

Lankershim  S.  D.  Bonds  (Assumed). 
5s      '05 $1,000 July   10  '15 

Las  Feliz  S.  D.  Bonds  (Assumed). 

5s      '03 $4,500 June  29  '15-'23 

5s      '07 3,000 Mar  25  '15-'17 

Miramonte  S.  D.  Bonds  (Assumed). 

5s      '08 $10,000 May  18 

4Hs  '09 5,000 July  26 

5s      '11 13,000 Sept   1 

Mt.  Washington  S.  D.   (Assumed). 
5so   '12... $9,000 Jan  1  '15-'32 

San  Pedro  Sch.  Bonds  (Assumed). 

6s      '03 $2,700 Nov  9 

5s      '05 6,000 Oct  10 

Sunnyside  Sch.   Bonds   (Assumed). 

5s      '06 $6,000 Sept  30  '15-'20 

5s      '06 2,000 Nov  5  '21-'22 

Terminal  Sch.  Bonds  (Assumed). 
5s      '04 $1,500 June  21  '15-'18 

The  Pass  Sch.  Dist.  (Assumed). 
5s      '04 $5,000 June  13  '15-'24 

Washington  Park  Dist.  (Assumed). 

5s      '11 $5,000 Aug  1  '27 

5s      '09   7,500 April  19  '15-'29 

BONDED  DEBT  July  1  '13 $     2,049,800 

Assessed  valuation  1913 413,420,613 

Real   value    (est.) 825,000,000 

School  tax  rate   f  Elementary  ....  4.90 

(per  $1,000))  ]  High  school 3.00 

1913    \  Elem'ty  &  high.  .50 

LOS   ANGELES    CITY    HIGH    S.   D. 

Polytechnic   High   School  Bonds. 

4s      '06 $156,000 Jan  1  '15-'36 

4s      '09 420,000 April  1  '15-'49 

4'As'U 518,000 Sept  1  '15-'51 

Hollywood  H.  S.   Bonds  (Assumed). 

5s      '04 $  32,500 May  23  '15-'24 

4'As'09 12,000 June  7  '15-'20 

5s      '10 100,000 Jan  27  '15-'34 

Jewell  School   Bonds   (Assumed). 
4'As  '06 $12,000 July  2  '15-'26 

San  Pedro  City  S.  D.  (Assumed). 

5s      '04 $20,000 Dec  27  '15-'24 

5s      '05 6,000 Oct  3  '15-'20 

BONDED  DEBT  July  1   '13 $     1,294,500 

Assessed  valuation   1913 413,420,613 

Real  value  (est.) 825,000,000 

School  tax  (per   f  Elementary  ....  4.90 

$1,000)    1913    \  High  school....  3.00 

I  Elem'ty  &  high.  .50 

LOS    ANGELES    COUNTY. 

County  seat  is  Los  Angeles. 

Highway  Bonds. 

4Msg09     F-A     $3, 500,000c Feb   1   '15-'49 

BONDED  DEBT  Sept  22  '14....$  3,500,000 
Assessed  valuation  '14  (3-5  act.)..  849,991,595 
State  &  Co.  tax  rate   (  Inside    . . .  8.50 

(per  $1,000)  (Outside...  12.50 

Population    in    1910 504,131 

INTEREST  at  Kountze  Bros.,  N.  Y.  C. 


MENDOCINO    COUNTY. 

County  seat  is  Ukiah. 

Refunding  Bonds. 

4s '01     J-J     $62,500c July   1  '15*39 

BONDED  DEBT  July  1  '13 $  65,000 

Assessed  valuation  '13   ('A   act.)...    18,147,700 

State  &  Co.  tax   (per  (  Inside    12.00 

$1,000)   '13                   I  Outside 18.00 

Population    in    1910 23,920 

MERCED   COUNTY. 

County  seat  is  Merced.  Bonds  are  exempt 
from  taxation. 

Refunding  Bonds. 

4s  g  '03    Dec    $30,000c Dec  1  '14'16 

BONDED  DEBT  Sept  25  '14 $        30,000 

Assessed  valuation  '14   (M   act.)...   25,144,757 
State  &  Co.  tax  rate  (Inside    13.00 

(per  $1,000)  (Outside 19.00 

Population   in    1910 15,148 

INTEREST  at  County  Treasurer's  office. 

MODESTO. 

This  city  is  in  Stanislaus  County.  Incor- 
porated 1884.  Re-incorporated  in  1911.  Op- 
erating under  commission  form  of  government. 
Population    1910,   4,034. 

Fire,  Water,   Sewer  and  Street  Bonds. 

5s    g   '09     J-D  j  $3O,000c Dec  1  '14-'2S 

(    18,000c Dec  1  '26- '28 

5s        '10     J-D       87,500c Dec  1  '15-'49 

Street   Bonds. 
5s         '11      J-J     $27,7S0c Jan  2  '15*51 

Water  Bonds. 

5s  '12     J-J     $77,500 Jan  2  '15-'45 

BONDED  DEBT  Sept  28  '14 $    249,250 

Assessed  valuation  '14   ( 'A   act.)....   4,389,270 

City  tax  rate  (per  $1,000)  '13 16.00 

MODESTO   IRRIGATION  DIST. 

This  district  (P.  O.  Modesto)  is  in  Stanis- 
laus  County.      Bonds  are  tax-free. 

5s  J-J     $l,010,511c Jan    *23-'42 

5s  J-J  332,000c Jan   '25-'44 

6s  g  J-J  17,100c Jan  '15-'23 

5s     '09    J-J  244.000c   1929-1939 

BONDED  DEBT  Oct  7  '14 $1,593,611 

Warrants  outstanding  Jan   1   '14....         11,970 

Assessed  valuation  '14 6,960,870 

Tax  rate  (per  $1,000)   '14 25.00 

INTEREST  payable  at  Treasurer's  office 
and  First  National  Bank  at  Modesto. 


(Compiled  by  the  Commercial  and  Financial  Chronicle.) 


CALIFORNIA  CITIES  AND  TOWNS 


117 


..July  1  M5'34 
..July  1  '15-'38 
.Mar   12  M5-'40 


MONROVIA. 

Monrovia  is  in  Los  Angeles  County.     Incor- 
porated December,  1887.     Pop'n  1910,  3,576. 

Water   Bonds. 

6s  '94     July   $20,000 

6s  "98     July     15,000 

6s  '00     Mar     13,135 

5s  '05     ID        3,400 1930 

5s  '07     Mar     25,500 1947 

5s  '07     Mar       3,500 1927 

5s  '09     Mar     15,000 1943 

5s  '10     Ian      47,500 

Fire   Apparatus   Bonds. 
5s  '05     Mar        $400 1915 

Library   Bonds. 
5s  '05     J-D         $400 1915 

Sewer  Bonds. 
5s  '10     Jan$114,000 

Park  Bonds. 
5s  '05     J-D    $14,000 1945 

Building  Bonds. 

5s  '05    J-D      $6.600 1941 

BONDED  DEBT  June  1  '13 $    282.050 

Assessed  valuation  M3-'14  (Vi  act.).   4,000.733 
Tax  rate  (per  $1,000)  '13 15.00 

INTEREST  at  City  Treasurer's  office. 


MONROVIA   CITY  SCH.   DIST. 

BONDED   DEBT  April  20  '14 $      57,750 

Assessed  valuation  '13 4,150,000 


MONROVIA  HIGH   SCH.   DIST. 

5s  g  '10    Sept    $121,700c Sept   12  M4-'S0 

BONDED    DEBT  April   '14 $    125.000 

ted   valuation  '13 4,150,000 

INTEREST  at  County  Treasurer's  office. 


MONTEREY. 

This   city    is    in    Monterey    County.      Incor- 
porated as  a  city  of  sixth  class  in  1889.     Com- 
on    government   went   into   effect  July    1, 
1911. 

Municipal   Impt.   Bonds. 

5s  g  '09   J-J    $131,448c Jan  2  M5-*51 

BONDED  DEBT  Sept  23  '14 $    131.448 

Assessed  valuation  '14  (Vi  act.) 2,650.496 

City  tax  (per  $1,000)  '13 14.50 

Population    in    1910 4,923 

INTEREST  at  City  Treasurer's  office. 


OAKDALE  IRRIGATION   DIST. 

This  district   is   in  Stanislaus  County. 

5s  MO     J-J     $1, 600.000c ...July  1  *31'40 

5s  '13    J-J  400.000c ...Jan    1    '34-'43 

BONDED  DEBT  Sept  21  '14 $2,000,000 

Assessed  valuation  '14   (1-3  act.)...   3,183.660 
Total   tax    (per  $1,000)    '14    (est.)...  60.00 

Population  in    1914   (est.) 4,500 

INTEREST  at  District  Treasurer's  office. 


OAKLAND. 

Oakland    is    the    county    seat    of    Alameda 
County.     Incorporated  1854.     Commission  gov- 
ernment adopted  Dec.  8,  1910. 
Refunding  Bonds. 

4s       g'97M-S     $17,5O0c Sept  1  M5-M9 

McElroy  Bonds. 

4Vis  g  '09      J-J     $3.016,700c Jan  1  M5-'50 

Municipal    Improvement    Bonds. 

5s       '13     F-A         725,000c Aug  1  '1S-'4J 

5Vis  '13     F-A     $    986,000c Aug  1  '15-'4J 

4Vis  "13     F-A       1.131,000c Aug  1  M5'43 

Refunding   Bonds. 

4s       g  '97  MS     $80.500c Septl'15-'37 

Sewer  Bonds. 
4Vis  g  '07      J-J     $485, 512.50c... Jan  15  '15-'47 
Park  Bonds. 

4J4s  g  '07      J-J     $818,400c Jan  15  M5'47 

School   and  Auditorium    Bonds. 
4Vis       Ml     J-D     $l,009,357.50c.June  15  M5-'51 
Clawson  School   Bonds. 

5s       '14    F-A     $26,000c Aug    1    M5-'29 

Auditorium  Bonds. 

4Ke '14     F-A     $104,000c Aug   1   M5'39 

BONDED  DEBT  Sept  19  '14 $     8.319,470 

Total  assessed  valuation  M3-M4. .  .'153.845,660 

Real  value   (est.) 307,691.840 

Total  tax  (per  $1,000)   M3-M4 30.80 

Population   in    1910    (Census) 150,174 

Population    in    1914    (est.) 215,000 

•Of  the  total  valuation,  $451,400  is  exempt 
from  taxation  in  accordance  with  State  laws 
and  $15,666,510  is  taxed  by  the  State  only,  but 
on  this  last-named  amount  the  State  reim- 
burses the  city  for  taxes  on  interest  and  re- 
demption on  bonds  sold  prior  to  Nov.  10,  1910. 
INTEREST  on  all  bonds  payable  at  City 
Treasurer's  office.  The  McElroy  bonds,_  School 
and  Auditorium  bonds  and  the  municipal  im- 

Ement,    Clawson    School    and    Auditorium 
onds  of   1914,  can  also  be  paid  at  National 
City  Bank,  New  York  City. 


ORANGE  UNION  HIGH  S.  D. 

Building   Bonds. 

5s  '12     MS     $46,000r Septl'15-'37 

BONDED  DEBT  April  '14 $      68,000 

Assessed   valuation   '13 4,398,02s 

School   tax    (per  $1,000)    '13 6.70 

INTEREST  at  County  Treasurer's  office. 

ORANGE    COUNTY. 

Santa  Ana  is  the  county  seat. 
4s $40.000 

Bridge   Bonds.  

5s  g  '12     MS     $90.000c 1915-1932 

Hospital  and  Almshouse  Bonds. 
5s   g    M2     MS     $54,000 1915-1932 

Highway  Bonds. 

5s    '13 $1,270,000 

BONDED  DEBT  July  1  '13 $  1.457,000 

Aueued  valuation   '13 41,887,23s 

State   &   Co.   tax        (Inside     10.50 

(per    $1,000)    '13    (Outside 14.50 

Population    in    1910 34,463 

OROVILLE. 

This  city  is  in  Butte  County.     Incorporated 
Jan.   3,    1906.      Population   1910,  3,859. 

Levee   Bonds   (Tax   Exempt). 

5s  J-J     $68,000c 

($2,000    payable   annually   on   July   1.) 

Sewer  Bonds  (Tax  Exempt). 

5s  J-J     $108,000c $3,000  annually 

BONDED    DEBT  Oct  M4 $    176,000 

Assessed  valuation  '14  (3-5  act.) 1,820.263 

City   tax    (per   $1,000)    '14 18.50 

INTEREST  payable  at  City  Treas.  office. 

OXNARD. 

This    city    is    in    Ventura    County.      Incor- 
porated in   1901. 

Water-Works    Bonds. 

5s  '12     M-N     $100,000c May   1   '22-'46 

Sewer    bonds $      33,625 

BONDED  DEBT  Sept  11  '14 133.625 

Assessed   valuation   '14 2,370,687 

Tax  rate   (per  $1,000)    '14 1100 

Population    in    1910 2.555 

INTEREST  on  water-works  bonds  payable 
at  City  Treasurer's  office. 

PALO  ALTO. 

This    city    is    in    Santa    Clara    Co.      Incor- 
porated July   1,   1909.     Population  1910,  4,486. 

Sewer  Bonds. 
5s  A-O     $24,000c Oct    1  M5-'38 

Improvement  Bonds. 

5s  A-O     $28,000c Oct    1  M5'42 

5s  A-O       60,000c May  1  M5-'47 

5s  g  '09  JJ       12,600c July  1  M4'50 

5s   Ml     J-D       27,500c July  1  M4'3 


OAKLAND    SCHOOL   DISTRICT. 

4Vis   '04     JJ     $720,000 1944 

4.8s     "06     J-J       224.000 1946 

BONDED   DEBT  Oct  6  M4 $        994.000 

Aueued  valuation   M4   (VS   act.)..    135,591.670 

School  tax  (per  $1,000)  '14 8.60 

Population  in   1914    (est.) 225,000 

Bonds  are  exempt  from  taxation. 

INTEREST  at  County  Treasurer's  office. 

ORANGE. 

This  city  is  in  Orange  County. 

Water  Works  Bonds. 

5s       Ml     J-D     $48.750 1951 

4tfs  '05    40,000 1945 

Sewer  Bonds. 
Ss       MO $14.000 1926 

Paving  Bonds. 
5s       M0    $4.000 1920 

Fire  Dept.  Bonds. 

5s       Ml    $4.500 1921 

TOTAL  BOND  DT.  April  20  M4..$    106.650 

Assessed  valuation   '13 2.179.451 

Real   value    (est.) 5,000.000 

Total  tax  (per  $1,000)  M3 13.00 

Population  in   1910 2.920 


.1954 


Jan  2  M5-M2 


4VSs  Ml  75,000 19171931 

5s  '14         F-A       90,000 

(Due    $5,000    yrly.    for    15    yrs.    beg.    after    4 

years   from   issue.) 

High-School    Building    Bonds. 

4Vis  Ml    M-N     $475,OOOc May  1   M9'42 

BOND  DEBT   [une  1  "14 — 

City    School    District $    548,000 

High    School    District 475,000 

Assessed  raL  '14  (33  to  40%  act.).  .46,632,150 
Tax    rate    (per   $1,000)  1  Gram.  sch.  bds.$1.10 

M4-M5  (  High  sch.  bds.  .50 
Total   tax    (per  $1,000)    M4-M5 8.60 

INTEREST    at    County    Treasurer's    office. 

PLUMAS    COUNTY. 

Quincy  is  the  county  scat.  All  bonds  are 
tax-exempt. 

Refunding  Bonda. 
4s  A-O     $35, 100c 1934 

Bridge   and    Highway    Bonds. 

4s  g  '07  A-O     $100,000 Oct  1  M7'32 

(Part    every    5    years.) 

BOND  DEBT  Sept  22  '14 $    135,100 

Assessed  val.  '14   (3-5  act.) 9,3')K.X11 

State    &    Co.    tax    rate  1  Inside    (?) 

(per  $1,000)    (Outside    $16.00 

Population    in    1910 5.259 

INTEREST    at    County    Treasurer's    office. 

POMONA. 

This  city  is  in  Los  Angeles  County.  In- 
corp.  Jan,  1888.  All  bonds  tax-exempt.  Popu- 
lation  1910,   10,207. 

Special  Fire  Bonds. 
5s  '13  M-N     $15,000c 

(Part    yearly   beg.    Nov    1,    1914.) 

Special    Street   Bonds. 
5s  M3  M-N      $75,OOOc 

(Part  yearly   beg.    Nov.    1,    1914.) 

Sewer   Bonds.  . 

4s  '00  J-D     $20,250c 1940 

Park   Bonds. 
4s  '().)  J-D     $43, 500c 1943 

School  Bonds.  , 

4Vis  '07  J-D     $33,OOOc July   1  '15-'47 

City-Hall    Bonds.  

4Vis  *09  J-l     $46.37Sc July J  '15- 49 

BOND   DEBT  June   .10  '14 $    235,450 

Assessed    valuation    1914    <  V,    act.)..   8,490.301 
Tax   rate   (per  $1,000)    M4 16.M) 

INTEREST  at   City   Treasurer's  office. 


27,500c. 

Subway  Bonds. 
5s  '14       J-J         $9,500.. 

Street  Paving  Bonds. 
5s  '14       J-J       $25,000 1954 

Water  Bonds. 
5s  A-O     $22,000c July  15  M5'36 

Light   and   Water   Bonds. 
5s    '12  $19,000c 1952 

Power-Plant-Impt.  Bonds. 
5s    '12  $1 1,200c 1927 

Oil  Pipe  Line  Bonds. 

Si    '12  $2,800c 1927 

BOND  DEBT  Sept.  21   '14 $244,600 

Assessed   valuation   M4-M5 $9,009,572 

(Assessment    3-5    on    real    estate    and    2-5    on 
personal  property.) 
City  tax  (per  $1,000)  M2-M3 $9.50 

INTEREST  payable  at  Bank  of  Palo  Alto. 

PASADENA. 
This   city   is   in    Los   Angeles   County.      In- 
corp.    June     14,     1886.       Resilient    districts    of 
San   Rafael   Heights  and  Linda  Vista  annexed 
to  this  city  Aug.  12,  1914. 

Electric-Light-Extension  Bonds. 

4s  '06         J-J     $100,000c July  1  M4-'46 

4Vis  '08  A-O         42,500c Apr  1  M5-'48 

4s  '09       MS       131,250c Mch  1  M4'49 

Street-Machinery    Bonds. 
4s  '02         J-J  $12,250c... 

City  Hall  and  Jail   Bonds. 

4s  '02        J-J         $34,650c Jan  2  M5-'42 

City    Hall    Bonds. 

4Vig'll    J-D         $21,275c June  1  M5-'51 

Park  Bondt.  

4s  g  '02  JJ  $50.000c&r Jan  2  M5-'22 

4s  P02        /J  10,000c Jan   2  M5'22 

Water  Bonds.  , 

4s    '05    M-N         $19,375c May  1  M5'45 

4s   '02        JJ  4,200c Jan  2  M5-'42 

Water-Plant-Purchase   Bonds. 

4Vis  '12  A-O  $1,250.000 

(Due  $50,000  yearly  beginning  Oct   1     17) 
Sewer  Bonds. 

4Vis    '08   A-O     $42,500c Apr   1   M5-'48 

4s  '02       j-J       24,500c Jan    2  M5-'42 

Sewer  Farm  Bonds. 

..  '02  $3,500 Jan  '15-42 

Fire-Department  Bondt. 

4s  '02  J-J     $14.000c 

4s  '06  J-J       60.000c 

4Vis    g   '11    J-D        16,650c 

Bridge  Bonds. 

4Vis    g   Ml    J-D     $92.500c June  1  M5-'31 

Garbage-Incinerator-Plant   Bonds. 

4Ki  k  M 2   M-N     $52.O00c May  1  M5-'52 

BOND   DEBT  Sept   1  M4 $1,981,950 

Cash   on   hand 303.439 

Assessed  valuation   '14    (2-3   acct.).  .57,551.665 

City  tax   (per  $1,000)   M3-M4 11.40 

Population    in    1910    (census) 30,291 

INTEREST  at  City  Treasurer's  office. 

PASADENA   SCHOOL  DISTRICT. 

Includes  the  City  of  Pasadena  and  North 
and  East  Pasadena,  Altadena,  La  Manda 
Park  and   Linda  Vista  School  Districts. 

School  Bonds.  

4Vis  '02   Sept     $45,000c Sept  15  M5'22 

4s  '03         Sept       46,000c Sept     8  M4'37 

4 Vis  '04      Oct       20.000c Oct    24  M4-M8 

4s  '06         M-N      125.000c Mch    12  M5-'39 

4 Vis  '08  140,000c Apr    27      1915 


Department   Bonds. 

J  J     $14.000c Jan     2  M5-'42 

JJ       60,000c July    1  M4'46 

Ml    J-D       16,650c June       M5-'51 


POMONA  CITY  SCHOOL  DISTRICT. 

4 Vis    '09  $77.000 1949 

Building  Bonds. 

5s  '1J  $27,000 1914-1923 

BOND   DEBT  Apr   1914 $77,000 

POMONA    CITY    HIGH    SCHOOL    DIST. 

4'/is  '03  $27.000 J923 

4 Vis  '09  57,000 ivJSJJ 

BOND   DEBT  Apr   1914 $84,500 

REDLANDS. 

This    city     is     in     San     Bernardino    County. 
Incorporated    Nov.    1888.      Pop.    1910,    10,449. 

Water-Works   System.  

5s  g  '12  M-N     $600,000c Nov  15,  '22-'51 

Municipal  Improvement  Bonds. 

4Vi   g  '05    J-J         $77,500c July  15  M5'45 

Special   Improvement    Bonds.  ...... 

5s  g  '07       J-J       $32,500c Jan  15  M5'27 

Public  Park"  Bonds.  

4Vis   g   '07    F-A($  9,000c Aug  1     14-22 

)     10,000c Aug   1   '23  '27 

5s  Ml  MS       74.000c Mch   1  M5-'51 

BOND.   DEBT   Tan   1   M4 $    610,000 

Sinking  fund  July   1,  '14 .J,3,'4*0, 

Assessed  valuation  '13   ( V$   act.) 9,192.300 

Total    tax    rate    (per   $1,000)    '13...  42.20 

INTEREST  at  office  of  City  Treasurer. 

REDLANDS    SCHOOL    DISTRICT. 

Grammar  School  Bonds. 

5s  '02  $10,000 1915-1919 

SS  '02  9.000 Sept    15  M5'23 

5s  '03  16,000 May     26  M5-M9 

5s  '04  9,000 Mch      8  '15- 23 

5s  '07  5,000 Apr  13  '20-'21'22 

5s  g  '08  Aug     50,000c Aug     24  '23'32 

High   School    Bonds.  

5s  '03  $36,000 July     7  M5'23 

5s  g  M0  Apr     85,000 1915-1935 

BOND.   DEBT  Sept  M4 — 

Grammar  School   District $loo.cci) 

High    School    District 121.000 

Assessed  val.   M3    (  V,   act.) 7.719,021 

School  tax  rate  (per  $1,000)  '13 $12.50 

INTEREST  at  County  Treasurer's  office. 

REDWOOD  CITY. 

This  city  is  in  San  Mateo  County. 

Street  Light   Bonds.  ...... 

5VisM3  A-O    $5.700 Apr  7  Mj-'33 

Water  Works    Bonds. 
5Vis'00  ....      $5,600 1940 

Water  Works   Extension    Bonds. 
5Vis'09 $17.000 1929 

Municipal    Improvement    Bonds. 

4 Vis  '04  ...  .    $82,500 1944 

5s      M0....      40,375 1950 

Paving    Bonds. 

5VisM2....     $30.000 

BONDED   DEBT  July    1    '12 $     150.154 

Assessed    valuation    '12 2,081,965 

Tax  rate  (per  $1,000)  '12 16-70 

Population  in   1910 2,442 

RICHMOND. 

This  city  is  in  Contra  Costa  County.  In- 
corporated Aug.  7,  1905.  Population,  1910, 
6,802. 

Harbor  Bonds. 
5s  M3  JJ  $290.000 1914-1952 

Improvement  Bonds. 

5s '13  JJ   $270,OOOc Jan   1   M5'23 

BONDED  DEBT  Mar  20  M4 $      560.000 

Assessed    valuation    '13 15.235,860 

(Assessment  about  60' i    act.  value.) 

Total  tax   (per  $1,000)   M3 26.65 

Citv    tax    rate    (per   $1,000)    '13 10.00 

INTEREST  at  City   Treasurer's  office. 


(Compiled  by  the  Commercial  and  Financial  Chronicle.) 


118 


CALIFORNIA  CITIES  AND  TOWNS 


RIVERSIDE. 

This  city  is  the  county  seat  of  Riverside 
County.     Incorporated  1883. 

Street  Improvement   Bonds. 
5s '95  s.-an.    $47,250c Aug  1  '15-'35 

Electric-Light  Improvement  Bonds. 
5s '95  F-A    $21,000c Aug  1  '15-'35 

Steam  Power  Plant  Bonds. 
4s  g '00  J-D  $26,000c June  1   '15-'40 

Fairmont    Park    Bonds. 
4Ksg'll  MS  $25,500c Mch  1  *15-'31 

Fire    Department    Bonds. 
4j4sg'll  M-S    $17,000c Mch  1  '15-'31 

Water-Works-Purchase    Bonds. 

5s '13  J-D   $1. 131,000c June  1  *15-'53 

BONDED  DEBT  Sept  30  '14 $  1,271,000 

Floating  debt  July  '14 13,690 

Assessed  valuation  '14  (30%  act.)..    10,264,999 

Total  tax  rate  (per  $1,000)   '14 43.50 

Population     in     1910 15,212 

INTEREST  at  City  Treas.  office  &  in  N.  Y. 

RIVERSIDE    CITY    SCHOOL    DISTRICT. 

All    bonds    are   tax-exempt. 

4s  g  '01   F-A    $  24,000c 1915-1920 

5s      'OS  Feb         32,000c 1915-1922 

4Ks'10  F-A      250,000c Aug  3   1920-M9 

5s      '14  M-S        50,000 $2,000  annually 

BONDED    DEBT    Sept    21    '14 $    356,000 

Assessed    valuation    '13    (30%    act.)   9,659,735 

School  tax    (per  $1,000)   '13 11.20 

Population    in    1914     (estimated) 17,000 

INTEREST  payable  at  County  Treasury. 

RIVERSIDE  COUNTY. 

Riverside  is  the  county  seat.  All  bonds 
are   tax-exempt. 

Highway  Bonds. 
5g'14  M-N  $1, 125,000c May  1  *25-'54 

Court-House   Bonds. 

4sg'02  M-S  $14S,000c Sept  1  '14-'42 

BONDED    DEBT    May    '14 $  1,270,000 

Assessed  valuation   '13    (1-3   act.)..   31,984,516 
State  and  cotintv  tax  j  Inside    ....  13.00 

(per  $1,000)  '13 )  Outside 19.00 

Population    in     1910 34.696 

INTEREST  on  highway  bonds  at  County 
Treasurer's  office  or  at  Hanover  National 
Bank,  New  York;  on  other  bonds  at  County 
Treasurer's  office. 


.July   1  '15-'S3 
Jan'    1  '15-'41 


SACRAMENTO. 

County  seat  of  Sacramento  County  and  cap- 
ital of  State.  Re-incorporated  April  23,  1863. 
Delinquency  in  payment  of  original  debt. 
Commission  government  adopted  Nov.  7,  1911 
and   went   into   effect  July    1,    1912. 

Levee   and   Sewer    (red.   any   time). 

4sg'05  J-J  $120,000c Tan       '15-'38 

4sg'08  J-J     170,000c Jan  1  '15-M8 

Sewer  and   Drainage. 
4^s'13 $185,600 July  1  '15-'53 

Electric    Distribution. 
4J4s'14 $9,600 Jan  1  '15'54 

Levee  Bonds. 

4^s'13  J-J    $751,825 Jan     l'15-'53 

4s      '08  J-J         60,000c July   1  '15-'38 

High-School  Bonds. 

4s '05  J-J    $155,000c Jan     1  '15-'45 

4s '08  J-J        38,000c July   1  '15-'33 

City-Hall  Bonds. 
4s  '07  J-J    $247,500c July  1  '15-'47 

Water-Main   Bonds   (red.  anv   time). 

4^s'13 $  35,500   

4s      '03  J-J      106,000c 

River    Improvement    Bonds. 

Ayis         $67, 500c Jan   1  '15-'41 

Old    bonds    outstanding $         7,100 

BONDED    DEBT    Oct    '14 1,953,625 

Sinking     fund     3 1 ,607 

Assessed  valuation  '14   (72%   act.) .  .74,163,100 

City   tax    (per  $1,000)    '14 14.60 

Population    in     1910     (Census) 44,696 

Population    in    1914    (estimated) 75,000 

INTEREST  on  4J49S  levee  bonds  at  City 
Treasurer's  office  or  at.  Bank  of  New  York, 
N.  B.  A. ;  other  bonds  in  Sacramento  at  Cap- 
ital   National    Bank. 

SACRAMENTO    CITY    SCHOOL   DIST. 

4Ms'll  J-J   $2000,000 

(Maturity  20  bonds  in   6   years  and   10  bonds 

every  six  months  thereafter.) 

BONDED  DEBT  Mar  '14 $      200,000 

Assessed  valuation  '13    (3-5  act.)..   56,869,230 
Population  in  1914  (estimated) 71,000 

INTEREST    at    County    Treasurer's    office. 
SACRAMENTO    CITY    HIGH    S.    D. 

Building   Bonds. 

4^s'll  f-J   $100,000 

(Maturity  $4,000  in  16  years  and  $2,000  every 

6  months  thereafter.) 

BONDED  DEBT  Mar  '14 $      100,000 

Assessed  valuation  '13    (3-5  act.)..    56,869,230 

INTEREST    at    County    Treasurer's    office. 


SACRAMENTO  COUNTY. 

County   seat  is  Sacramento. 

Bridge   Bonds. 
4^s'08    J-J    $225,000c Jan   1   *17-'48 

Court-House  and    Tail    Bonds. 
4^s'08    j.j    $660,000c Jan  1  '17-'48 

Road  Bonds. 

4Hs'08    J-J    $600,000c Jan   1   '17-'48 

BONDED  DEBT  Apr  '14 $     1,485,000 

Floating   debt    66,825 

Value    of   county    property    '13 1,221,234 

Assessed  valuation  '13    (3-5  act.)..  80,057,358 
State  and  county        (Inside    12.23 

tax  (per  $1,000)     (Outside 16.70 

Population    in    1910 67,806 

SALINAS    CITY. 

This  city  is  in   Monterey  County.     Incorpo- 
rated  Feb.    11,    1903.      Population,   1910,  3,736. 

Sewer  Bonds. 
5s  '97  J-J   $23,000c Jan  2  '15-'37 

City   Hall    Bonds. 
5s  g  '06  J-D    $41, 250c Dec  31   '14-*46 

School   Bonds. 

!is'09J-J    $18,750c Jan     2 

12,375c Dec  31 


5s '06  J-D 


15 -'39 
14-'46 


BONDED  DEBT  Sept  23  '14 $      95,375 

Assessed    valuation    '14    (3-5    act.)..   2,502,394 
Total  tax  rate   (per  $1,000)   '14 28.70 

INTEREST   at   City  Treasurer's  office. 
SAN    BENITO    COUNTY. 

Hollister  is  the  county  seat. 

High-School    Bonds. 
5s        $24,000 $3,000  yearly 

Road   Bonds. 

5s '12  J-J    $280,000 July  1  '15-'42 

BONDED   DEBT  Sept  22   '14 $    304,000 

Assessed  valuation  '14  (3-5  act.) 9,091,200 

County  tax   (per  (Inside    27.00 

$1,000)   '14         (Outside 29.00 

Population  in   1910 8,041 

INTEREST  at   Holister. 

SAN   BERNARDINO. 

This  city  is  located  in  San  Bernardino  Coun- 
ty.     Incorporated   1886. 

An  amendment  to  the  city  charter  was 
adopted  on  April  18,  1913  and  subsequently 
approved  by  the  Legislature,  increasing  the 
borrowing  capacity  to  15%  of  the  assessed 
valuation.      Population  1910,  12,779. 

Water  Bonds. 

4s '03  A-O  $118,1 75c Apr  1  '15-'43 

4s  '03  A-O       48,300c Apr   1  '15-'43 

Improvements   Bonds. —  (Tax  Bxgmpt.) 

4yi  s  '08  A-O  $93, 500c 1915-1948 

BONDED  DEBT  Sept  '14 $    262,725 

Assessed   valuation  S  Non  operative. .   4,686,885 

'13-'14     (Operative 1,258,731 

Total  tax    (per  $1,000)    '14-'15 32.00 

INTEREST  is  payable  at  City  Treasurer's 
office  and  in  New  York. 


SAN   BERNARDINO    HIGH   S.   D. 

This   district   not   only   includes   the   city   of 
San  Bernardino,  but  also  adjacent  territory. 

5s  g  '14  A-O     $250,000 

(Due  $5,000  yearly  from  6  to  25  years  in- 
clusive and  $10,000  yearly  from  26  to  40 
years  inclusive.) 

BONDED  DEBT  May  '14 $    250,000 

Assessed    valuation  \  Xon  operative.  .   5,648,275 

'13-'14     (Operative 1,393,052 

Real   value    (estimated) 12,000,000 

INTEREST    at    County    Treasurer's    office. 


SAN    DIEGO 

This  is  the  county  seat  of  San  Diego  Co. 
Incorporated  Jan.  1,  1835.  All  bonds  are  tax- 
exempt.  All  bonds  due  part  yearly.  Popula- 
tion 39,578. 

Reservoir  Bonds. 
4>4g'07  J-D    $123,933c June  1  '15-'45 

Sewer  Bonds. 

4;4s'03J-J     $101, 500c July    l'15-'43 

4Ks'05A-O       58,125c Oct     l'15-'45 

4^s'07  J-D         42,394c June  1   '15-'43 

4^s'07  J-D  1,148c June  1   '15-'17 

4^s'07  J-D  9,334c June  1   '15-'33 

4^s'07  J-D  889c June  1  '15-'16 

4^s'07  J-D         27,112c June  1   '15-'42 

4^s'04 85,000c 1948 

4>4s  24,050c 1950 

4^s         2,000c 1918 

4^s         5,900c 1926 

4J^g'll  J-J         68,500c Jan     1  '15-'4S 

4J/is'13 114,000 1952 

Refunding   Bonds. 
4J^s'98  J-J     $156,000c Jan  1915-'38 

Fire   Department   Bonds. 

4!4s'03 $26, 000c July    l'15-'40 

4|/Ss'07 52,000c June  1  '15-'40 

4^s'12  ....       75,000c 1952 

Water    Bonds. 

4!4s'01J-J    $    406,000c July     1  '15-'41 

4>4s'03J-J         144,275c July    l'15-'43 

4j4s'05  A-O         41,850c Oct     1  '15-'45 

4^s'07  J-D  48,608c June  1   '15  '47 

4}4s'07  J-D         216,891c June  1  '15-M5 

4J4g'llJ-J         313,000c Jan     1  '15-MS 

4J4s'12 275,000   1952 

4!^s'12  J-J         323,000c 1952 

4^s'13J-J      2,437,500c Jan     1  '15-'52 

5sg'14A-0        705,000 Apr     1  '15-'54 

4>fs'14J-J       1,500,000c July    l'15-'54 

Street  Bonds. 
4K»'12 $51, 250c 1952 

Boulevard  and   Road  Bonds. 
4^g'07J-J   $56,O0Oc June  1   '15-M2 

Cemetery  Road  Bonds. 
Ayis'07  J-D    $l,500c June  1   '15-'17 

Concrete  Culvert  Bonds. 
4J^s'07  J-D    $39, 500c June  1  '15-'41 

Park  Bonds. 

4!/iSg         J-J    $925,0O0c 1950 

5s      g'13  M-S    828,750c Sept  1  '15-'53 

Playground-Purchase  Bonds. 
4^s'13 $71,250 1952 

Wharf  and  Harbor  Bonds. 
4j4g'll  J-J  $950,OOOc Jan  7  '15-'51 

Municipal  Improvement  Bonds. 

4*4l'12  J-J    $9,000c 1932 

TOTAL  DEBT  Sept  1  '14 $10,341,734 

Assessed  valuation  r14  VA  act.) 84,993,931 

City  tax  rate  (per  $1,000)  '14 15.70 

INTEREST  at  City  Treasurer's  office  and 
at  National  Park  Bank,  New  York. 


SAN    DIEGO    SCHOOL    DISTRICT. 

4s  g '06  July?  72,000c July       '15-'26 

5s     '07  July     130,000c July  5  '15-'27 

4V4s  '09  s-an       45,000c 1921-1929 

5s     '13  A-O     350,000c 1919-1953 

BONDED  DEBT  Sept  '14 $      597,000 

Assessed  valuation   '13    (2-3  act.)..   50,356,208 

School   tax   rate    (per  $1,000)    '13..  8.00 

INTEREST    at    County    Treasurer's    office. 


SAN   DIEGO    HIGH   SCHOOL  DISTRICT. 

5sg'05  M-S    $  99,000c Sept       '15-'25 

5s     '11   Feb       200,000   Feb    6  '17*51 

BONDED   DEBT   Sept   '14 $      299,000 

Assessed  valuation   '13    (2-3   act.)..   50,356,280 

School   tax   rate    (per   $1,000)    '12..  8.00 

INTEREST    at    County    Treasurer's    office. 


SAN    DIEGO    COUNTY. 

San  Diego  is  the  county  seat. 

Highway   Bonds. 

4^K  09  A-O   $l,095.000c Oct  1   '15-'49 

BONDED  DEBT  Oct  '14 $  1,095,000 

Sinking    fund    Sept    "14 50,329 

Assessed  valuation   '14    (40%   act.)   75,780,118 
State  and   county   tax  J  Inside    11.90 

(per  $1,000)    '14..  .(  Outside 18.50 

Population    in     1910 61,665 

INTEREST    at    County    Treasurer's    office. 

SAN  FRANCISCO., 

San  Francisco  is  in  San  Francisco  County. 
Financial  statement  given  below  is  for  both 
city  and  county. 

At  an  election  held  Dec.  10,  1912,  17  amend- 
ments to  the  city  charter  were  adopted. 

An,  agreement  has  been  reached  between 
the  city  and  the  Spring  Valley  Water  Co.  on 
a  plan  of  condemnation  proceedings. 

The  Board  of  Supervisors  on  Jan.  5,  1914, 
passed  an  ordinance  formally  accepting  the 
water  supply  and  power  rights  in  the  Hetch- 
Hetchy  Valley,  granted  in  the  bill  passed  by 
Congress  in  1913. 

The  $5,000,000  5%  exposition  bonds  given 
in  table  below  are  not  figured  in  the  15%  debt 
limit.  These  bonds  were  voted  Nov.  15,  1910. 
See  remarks  under  State  of  California  for  con- 
stitutional amendments  giving  authority  to 
issue  these  and  other  bonds. 

On  Aug.  26,  1913,  the  voters  authorized  the 
issuance  of  $3,500,000  municipal-railway-system 
bonds.  Up  to  March  20,  1914,  $1,802,500  had 
been  disposed  of. 

Golden   Gate   Park    Bonds. 
3>4s'04  J-J    $246,000c July  1  '15-'44 

Library    Bonds. 
3J4s'04  J-J    $328,800c July  1  '15-'22 

Mission  Park  Bonds. 
3^s'04J-J    $219,000c July   1   '15-'44 

Playground   Bonds. 
3^s  '04  J-J    $555,OOOc July   1  '15-'44 

Hospital  Bonds. 
5s '08  J-J    $1,800,000 July   1   '15*32 

Hospital-Jail    Completion    Bonds. 
4'/i  '13  A-O    $629,00(1 Apr  1  '16-'37 

Sewer    Bonds. 

5s      '08  J-J   $3,629,000c July   1   '15-'54 

3>/iS'04  ....  8,000c 

Polytechnic   High-School   Bonds. 
4>4s'10  J-J    $575,000c July  1  '14-'37 

Fire-Protection  Bonds. 
5s '08  J-J   $5, 200,000c July   1   '16'55 

Garbage   Disposal   Bonds. 
5s '08  J-J   $672,000c July  1  '15-'30 

School  Bonds. 

3J4s'04  J-J     $    785,400c July   1   '14*16 

5s      '08  J  J       4,800,000c July   1  '15-'38 

Street   Bonds. 
3'As  '04  J-J     $506, 250c July   1  '15-'19 

City  Jail  and    Hall   of  Justice.  . 

3'4s'04  J-J    $104, 400c July  1   '15-'20 

is      '08  J-J      850,000c Julyl'15-'31 

Water-Supply    Bonds. 

4'/fis'10  J-J    $    100,000   Jan   1   1915 

4J4s'10  J-J      1,212,000c 1920-1964 

Geary  Street  Ry.  Bonds.  .,..,», 

4"4s'10  J-J     $l,900,000c July  1  '15-'34 

Market  Street  Ry.  Bonds. 
Ayis  '10 $69,000 

Union   Street   Ry.   Bonds. 
5sg'13  J-D     $l,802,500c Dec  1     17-51 

Exposition    Bonds. 

5s  '12  M-N  $5,000.000 ■■■■ 

(Payable  $200,000  yearly  beginning  May  1    17) 

City-Hall  and  Civic-Centre  Bonds. 

5s '12  J  J   $7,480,000c July  1  '17-60 

Special   bonds  made   payable  by   statute   from 
taxes   on    lands    benefited : 

Montgomery  Ave.  bonds $1,579,000 

Dupont     Street    bonds,     7s,     amount 

outstanding    285,000 

Both  the  Dupont  St.  and  the  Montgomery 
Ave.  bonds  have  long  been  in  default,  but 
they  were  not  obligations  of  the  municipality. 

Holders  of  Montgomery  Ave.  bonds  brought 
suit  against  the  State  to  recover  the  face  value 
and  interest  aggregating  $2,000,000.  The  Su- 
perior Court  holds  that  the  State  is  not- liable. 
Appeal  was  taken,  which  up  to  March  25, 
1914,   was   still   pending. 

INTEREST  is  payable  in  gold  in  San  Fran- 
cisco. 
TOTAL    DEBT.    SINKING    FUNDS,    etc. 
Mar.  20  '14         Oct.  31  '13 
Total  bonded  debt.  .$39,485,100         $34,997,600 
Sinking  funds    592,433  36,488 

Net  debt $38,892,667         $34,961,112 

CITY  PROPERTY.— The  following  is  a 
description  of  the  property  owned  by  the 
City  and  County  of  San  Francisco,  as  trans- 
mit'ted  to  the  State  Comtroller  by  direction 
of  the  Board  of  Supervisors  Oct.  13,  1913. 
The  water,  gas  and  electric-light  plant  are 
not  owned  by  the  city: 
Park    reservations,    public    squares 

and    improvements     $33,543,000 

Fire  department,  lots  and  improve- 
ments,  apparatus,  etc 3,930,130 

Police    department,     lots,     improve- 
ments  and    furnishings 342,100 

Auxiliary    fire-alarm   system 5,496,000 

City   Hall,    Hall    of   Justice,   county 
jails,    hospitals,     amshouses,    lots 
and    improvements    and    furniture     5,751,300 
Channel   St.   lots  from   9th   to    18th 

streets    :  •  •         610,000 

School  lots,  improvements,  libraries, 

furniture,  etc 12,963,520 

Garbage    system 684,756 

Hetch-Hetchy  lands 1,240,440 

County-line    Water    Co.,    lands    and 

property    30,000 

Geary  Street  railway 1 ,61 6,625 

Civic  Centre  lands 5,700,000 

Total    $71,907,871 


{.Compiled  by  the  Commercial  and  Financial  Chronicle.) 


CALIFORNIA  CITIES  AND  TOWNS 


119 


SAN    FRANCISCO— Concluded. 

ASSESSED  VALUATION  AND  TAX 
RATE. —  Property  is  assessed  at  about  50% 
of  its  actual  value.  Assessment  decreased  in 
1906,  owing  to  earthquake. 

1913-14.  191213. 

Real  estate $461,282,132     $447,777,237 

Personal   64,965,404         62,652,079 


Total    $526,247,536     $510,429,316 

Tax  (per  $1,000)...  22.42  20.50 

Tax  rate  for  city  and  county  purposes  for 
1913-'14  is  $20.20  and  for  State  purposes 
$0.42  per  $1,000  of  valuation. 

The  amount  of  taxes  levied  in  1913-M4  for 
city  and  county  purposes  was  $11,577,445.79; 
(or  State  purposes,  $221,023.96;  total  amount 
of   taxes.    $11,798,469.75. 

POPULATION— In  1910  (Census),  416.- 
91  J;  in  1900  (Census),  342,782;  in  1890, 
298,997;  in  1880,  233,959;  in  1870,  149,473. 


SAN    JOAQUIN    COUNTY. 
Stockton   is  the  county   seat. 


Highway  Bonds. 
SsgW  j.J  ; 

DED  DEBT  Mar  '14 $  1,750,000 


I- J  $1.750,000c 1949 


Assessed  valuation  '14  (3-5  act.)..  60,638,988 
State  and  County  tax  f  Inside    ....  14.50 

(per  $1,000)  '14 (Outside....  18.50 

Population    in     1910 50,731 

INTEREST  at  County  Treasurer's  office 
or  at  office  of  Kountze  Bros.,  New  York. 


SAN    JOSE. 

This  city  is  in  Santa  Clara  County.  In- 
corporated 1850.  Bonds  tax-free.  An  elec- 
tion held  November  2,  1911,  favored  annexing 
East  San  Jose  to  this  city.  In  December, 
1912.   Port  San  Jose  was  annexed. 

Municipal    Improvement    Bonds. 
4sg-06  A-O  $172,000c Apr  1  '15-'46 

High     School    Bonds. 
4*4sg  J-D  $43.125c June  1  '15-'37 

Sewer   Bonds. 

454s  g  J-D    $23,000c June  1  '15*37 

4J4s'12  F-A  95.000  Feb     1  '15-'52 

City-Hall  and  Fire  Bonds. 
4J4sg  F-A  $123, 750c Aug  1  '15-'47 

Park    Bonds. 
4*/Js  '12  F-A  $104,500 Feb  1  '15-'52 

Fire  and  Police  Department  Bonds. 
45-is'12  F-A  $57.000 Feb  1  '15-'52 

Incinerator  Bonds. 
A'As'U  F-A  $47,500 Feb  1  '15-'52 

Bridge  and  Creek  Bonds. 
4^s  '12  F-A  $52,250 Feb  1  '15*52 

Station  Bonds.  _ 

4!^s'12  F-A  $1,900 Feb  1  '15*52 

East  San  Jose  Bonds  (Assumed). 

5s      '09   $54,000 

(Payable  part  yearly  for  40  years.) 

BONDED    DEBT    Jan    1    '14 $      772,525 

Total  assessed  valuation  M3-'14 24,177,405 

ment  60-70<7'    actual  value.) 

City  tax  rate  (per  $1,000)  '13 12.40 

Population  in   1910 28,946 

INTEREST   at   City  Treasurer's  office. 


SAN    JOSE     SCHOOL    DISTRICT. 

4s  g  '07  Jan  $189,26Sc Tan     1  '15-'47 

5s     '08  M-N     29.000c Mav  1  M5'43 

BONDED  DEBT  Apr  '14 $      219.000 

Assessed  valuation  '13   (3-5  act.)..  23,640,756 
INTEREST  at  County  Treasurer's  office. 


SAN    JOSE    HIGH     SCHOOL    DISTRICT. 

4s  Ian     $127,000 Tan      1       1927 

5s '08  M-N       14.000c May  1  *15'28 

BONDED  DEBT  Apr  '14 $        33.000 

Assessed  valuation  '13   (3-5  act.)..   23,640,756 

School   tax   rate    (per    $1,000)    '12..  .65 

INTEREST  at  County  Treasurer's  office. 


SAN   LUIS  OBISPO. 

This  city  is  in  San  Luis  Obispo  County. 

Water    Bonds. 
Ss  '99 $56.000 1939 

Sewer  Bonds. 
5s '99  ....    $26.100 1939 

Improvement    Bonds. 

5s  "09 $171,000 1949 

BONDED   DEBT   May    15  '13 $    142,000 

ed  valuation 3,382,243 

Tax  rate  (per  $1,000)  '11 23.30 

Population    in     1910 5,157 

INTEREST   at   City  Treasurer's  office. 


SAN    LUIS    OBISPO    COUNTY. 

San  Luis  Obispo  is  the  county  scat.   Bonds 
tax-free.     Population,   1910,   19.383. 

Wharf    (Red.  after   10   yrs.    from   issue). 

5sg'06  Tulv  $32.000c July  1  *15-'30 

5sg'06Julv     42,000c July  1  *I5'35 

BONDED   DEBT  Sept   24   '14....$        74.000 

Assessed    valuation    '14' 15 18,338,866 

State  and   countv   taxi  Inside    ....  16.20 

(per    $1,000)    '14..  I  Outside 22.00 

INTEREST  at  County  Treasurer's  office. 


SAN  MATEO  COUNTY. 
Redwood  City  is  the  county  seat. 
Highway  Bonds. 

Ss'lf  J-J  $1,250.000 July  1  '17-*42 

Court-House   Bonds. 

4s  g '06  MS  $135. 397c Sept  1  '14*46 

BONDED    DEBT  July    1    '13 $      491,500 

Assessed  valuation  '13 29,479.940 

State  and  county  tax  J  Inside    10.50 

tax  (per  $1,000)  ....\  Outside 16.50 

Population    in     1910 26,585 

-INTEREST  at  County  Treasurer's  office. 

SANTA    ANA. 

This  city  is  in  Orange  County.  Incorpo- 
rated Tune  1,  1886.  Bonds  tax-free.  Popula- 
tion 1910,  9,800. 

Water  Bonds. 

5s      '05  FA    $77,500r Feb    1  *15-'45 

4Ms'll   MS      18.000 Mar  1       1931 

5s      M4   s-a  63,000 19151954 


Sewer  Bonds. 
4J4s'98  ....     $40,625c Apr  1938 

City  Hall. 
4J4s'04 $ll,000r Nov  1924 

School  Bonds. 
4"/5s'04  ....      $3,000 Nov  1915 

Fire  Bonds. 

5s '14  s-a     $12.000 19151938 

BONDED    DEBT   Apr  28   '13 $    152,625 

Assessed    value    (35%    act.)    '12 6,417.800 

City  tax   (per  $1,000)    '12 12.00 

INTEREST  payable  at  Treasurer's  office, 

SANTA  BARBARA. 

Santa  Barbara  is  in  Santa  Barbara  County. 
Incorporated  March  9,  1874. 

Main   Sewer   Bonds. 
4Msg'03  F-A  $10,150c Aug  1  '15-'43 

Bridge    Bonds. 
4!4g'03  F-A    $14, 500c Aug  1  *15-*43 

High-School  Bonds. 
5s  '01  Jan     $40,500c Jan  10  '15-'41 

Oak  Park  Bonds. 
4>4s'04  F-A  $1 1,250c Aug  15  '15-'44 

Water  Bonds. 

4J^s  "01   T-J     $  42,000c July    1  '15-'41 

4</,s'03Y\     145,000c Aug    1  *15-'43 

Water  Works  Extension  Tunnel. 

4Ms'08  MS     $170,000c Sep  1  '15-'48 

4"/$s'10  A-O      180,000c Oct    1  '15- 50 

Mission   Tunnel. 
5s         M-N  $116.000 Nov  1  *15-'33 

Boulevard  Bonds. 

AY,  '07  M-S     $42, 500c Sept  3  '1S-M7 

A'/,  '03  F-A       36,250c Aug    1  '15-43 

Street    Bonds. 

4^s'09  J-J  $37,625c July  1  M5-M9 

BONDED    DEBT   July    1    '14 $    868,325 

Sinking     fund      27,749 

Assessed   valuation    '13    (3-5    act.)..  9,893,030 
City    tax    rate     (per  j  Inside    14.00 

$1,000)     '12-'13...  I  Outside 12.60 

Population  in  1910 11,659 

INTEREST  on  water  works  extension  tun- 
nel and  street  bonds  at  Kountze  Bros.,  N.  Y. 
and  City  Treasurer's  office;  other  bonds  at 
City  Treasurer's  office. 

SANTA     BARBARA    COUNTY. 
Santa  Barbara  is  the  county  seat. 
Road   Bonds. 


SANTA    CLARA. 

This  town  is  in  Santa  Clara  County.  Incor- 
porated March  6,  1872.     Pop'n   1910,  4,348. 

Gas  Bonds. 
5s      '00  J-J      $19, 500c Jan    1  'lS-MO 

Water,  Light  and  Power  Bonds. 
4"4s*07  M-N    $17,325c May  1  '15-'47 

Sewer  Bonds. 
4"4s'07  M-N  $24,750c May  1  "15-'47 

Water   Bonds. 
5s      '95  M-N  $31,500c May  1  '15-'35 

School    Bonds. 

5s  g  '05  J-J        $38,750 Jan    2  *15'45 

4J4s'07  M-N  675 May  1  '15-'47 

i    5s      '12 58,500 

Fire    Apparatus   Bonds. 

5s      '12   $5,362.50 

BONDED   DEBT   May    1    '14 $    205.691 

I    Local  impt.   bonds   (included) 9,328 

Assessed  valuation  '14  (3-5  act.) 2,417,553 

Total   tax   rate   (per  $1,000)    '14 14.75 

INTEREST  payable  at  Treasurer's  office. 


SANTA  CLARA  COUNTY. 

San  Jose  is  the  county  seat. 

4s '07  Jan     $300,000c 1947 

BONDED  DEBT  Apr  '14 $      300,000 

Assessed   valuation    '13 80,072,624 

State  and   county  taxi  Inside    ....  11.50 

(Per   $1,000)    '13..  J  Outside....  15.60 

Population    in     1910 83,538 

INTEREST  at  County  Treasurer's  office. 


SANTA  CRUZ. 

This  city  is  in  Santa  Cruz  County.  Commis- 
sion government  adopted  Jan.  31,  1911.  City's 
liability  on  Water  Co.  bonds  assumed  by  it 
sustained  by  U.  S.  Circuit  Court  of  Appeals 
on  Jan.    13,   1913. 

Wharf  and  Bridge  Bonds. 
5s'14  J-J  $182,000c Jan  15  1954 

Refunding   Bonds. 
4s '94  Apr    $189.000c 1934 

Water-plant  Purchase  Bonds. 

5s '13  F-A  $220.000 Feb  1   1930 

BONDED    DEBT   Apr    1    '14 $    591,000 

Assessed  val.  '13   (abt.  1-3  act.) 7,286,555 

Total  tax  rate  (per  $1,000)  "13 14.80 

Population     in     1910 11,146 

INTEREST  at  City  Treasury. 

SANTA   CRUZ  HIGH   SCHOOL  DIST. 

Building   Bonds. 

5sjr'14  MS  $160,000c Mar  25  '19'50 

BONDED    DEBT    Sept    '14 $    160,000 

Assessed  valuation  (real  and  pers.)  7,588300 
Real  valuation  between  $15,000.000  20,000.000 
Population    in    1914    (estimated) 12,000 

INTEREST    at    County    Treasurer's    office 

in    Sai:ta    Cruz.         

SANTA  CRUZ  SCHOOL  DISTRICT. 

Building    Bonds. 

5sg'14  MS  $80.000c Mar  25  '15*54 

BONDED     DEBT    Sept    '14 $    100.000 

Assessed  valuation  (real  and  pers.)  7.588,800 
Real  valuation  between  $15,000,000  &  20,000,000 
Population    in    1914    (estimated) 12,000 

INTEREST  at  County  Treasurer's  office  in 
Santa  Cruz. 


'11  J-J    $34,OOOc July  '15-*31 

'11  A-O     75,OOOc $5,000  yearly 

'12  ann     45,000c July  22  'l5-'32 

6s '13  ann      34,000c July  1915-30 

County  has  no  general   bonded  debt. 

Road  dist.  debt  Oct  6  '14 $      188,000 

Assessed   valuation  *14    (70%   act.)  29,154,461 
State   and   county   tax  J  Inside    ....  16.00 

(per    $1,000)     '14..  J  Outside 20.00 

Population    in     1910 27,738 

INTEREST  at  County  Treasurer's  office. 


.        SANTA   MONICA. 

This  city  is  in  Los  Angeles  County.  In- 
corporated Nov.  20.  1886;  chartered  1907. 
Purchase  of   local   water  plant  is  proposed. 

Sewer  and  Incinerator  Bonds. 
5s '07  M-N  $132,000 Nov  1  '15-'47 

Fire  Apparatus  (part  yearly). 
5s '06 $15,000 1941 

Crematory    Bonds    (part  yearly). 
5s '06 $7,501) 1926 

Storm-Drain   Bonds    (part  yearly). 
5s '06 $11,500 1934 

Sewer  Bonds  (part  yearly). 

6s  '97 $26,000 1937 

5s '06 32,000 1943 

City-Hall    Bonds    (part  yearly). 
5s '02 $26,000 1937 

Bridge  Bonds   (part  yearly). 

5s  "02 $16,000 1927 

5s'06  ....       4,000 1919 

5s '06 12,500 1936 

BONDED  DEBT  Sept  19  *14 $      273,000 

Assessed  valuation  '14  ('A  act.)...   15,747,455 

Tax  rate   (per  $1,000)   '14 14.00 

Population  in   1910 7,»47 

SANTA    MONICA    CITY    SCHOOL    DIST. 

4>4s'05 %  8,000 Nov     7  1915 

4!4s'06 8,000 June  21   1915 

5s      '08  M-N     30,000 1918-1932 

5sg'll  A-O       25.000 Apr  1  '17-'29 

5s      '12   80,000 Oct  1  '17-'52 

BONDED    DEBT   Sept    21    '14 $171,000 

INTEREST    at    County    Treasurer's   office. 

SANTA    MONICA    HIGH    SCHOOL   DIST. 

Polytechnic  High-School  Bonds. 
Ssg'll  A-O  $200,000 Apr  1  '17-'51 

High-School  Bonds. 

5s '12  A-O  $70,000 Oct  1  *17-'52 

TOTAL  DEBT  Sept  21  '14 $      270,000 

Assessed    valuation    11,342,155 

INTEREST  payable  at  County  Treasury. 


SANTA  ROSA. 

This  city  is  in   Sonoma   County.     Incorpo- 
rated in  1872. 

Water  Bonds. 

4s '95    Tan    $82, 500c 1915-1925 

4s'05   Jan      62,500c 1915-1925 

Sewer  Bonds. 
4s'05    Jan    $56.O0Oc 1915-1925 

Fire-Engine   Bonds. 

4s*05    Tan      $l,000c 1914-1925 

BONDED  DEBT  March  '14 $    242,100 

Assessed  valuation  *13'14  (3-5  act.)  6,429,885 

Total  tax  rate  (per  $1,000)  "13 14.00 

Population   in    1910 7,817 

INT.  at  Cy.  Tr.  of.  and  Un.  Tr.  &  Sgs  Ilk. 

SANTA  ROSA— COURT  HOUSE  SCHOOL 
DISTRICT. 

High  School  Bonds. 
5s'll     A-O     $80,000 1951 

Grammar  School  (Part  yearly). 

4!4s      $24,000 July  1  1925 

BONDED  DEBT  April  28  '14— 

High   School   District $80,000 

Grammar  School  District 24,000 


SAUSALITO. 

This  town  is  in  Marin  County. 

Water  Bonds. 

5s '09  J-J   $87.500c Jan  15  *15-'49 

BONDED   DEBT  Jan  '14 $      87,500 

Assessed  valuation  '13*14   (3-5  act.)  2,061,150 

Total  tax  rate  (per  $1,000)  '13 13.70 

Population   in    1910 2,383 


SIERRA   MADRE. 

This  city   is   in    Los  Angeles   County. 

Water-Works    Bonds    (part   yearly). 

5s '10  s-an  $  40,000c 

5s'll  s-an      111,000c 

5s'12  s-an       75,000c 1929-1953 

5s '13  s-an       20,000c 

5s'13    J-D     111,000c 

5s  '13  s-an       20,000c 

5s         36,000 

BONDED  DEBT  April  '14 %    171,000 

Assessed  valuation  '13   (V,  act.) 1,575,000 

City  tax  rate  (per  $1,000)  '13 15.00 

Population    in    1910 1,303 

INTEREST  at  City  Treasurer's  office. 


SOLANO    COUNTY. 

Fairfield  is  the  county  seat. 

Court-House   Bonds. 

5sg'09 $200,000c Dec  1  '15-'34 

BONDED  DEBT  March  '14 $      210,000 

Assessed  val.  '13   (65%  act.) 25,406,952 

State  &  Co.  tax  rate  (  Inside 13.00 

(per  $1,000)   '13      (Outside 17.00 

Population    in    1910 27,559 

INTEREST  payable  at  County  Treas.  office. 

SONOMA    COUNTY. 

Santa  Rosa  is  the  county  scat. 

Court-House   Bonds    (Tax-Exempt). 

4*4  g'07  June    $268,000c June  30  '14-'42 

BONDED  DEBT  March  '14 $      268,000 

Assessed   valuation  '13 40,781,686 

State  &  Co.  tax    (Inside    12.00 

(per  M)  in  '13  )  Outside 16.00 

Population    in    1910 48.394 

INTEREST  payable  at  County  Treas.  office. 

SOUTH    PASADENA. 

This  city  is  in  Los  Angeles  County. 

Bridge  Bonds. 
4yis  'II  . . .    $28.000 

Fire   Prot.,    Paving   and   Cy.-Yard   Bonds. 
5sg*14  J-T    $50,000c Jan  2  '15*54 

Sewer  Bonds. 

5sg'14  J-J    $120,000c Jan  2  '15*54 

BONDED  DEBT  Sept  21  '14 $    198,000 

Assessed   val.    '14  (  Non-operative. ..   5,792,415 

1  Operative 644,720 

Tax   rate    (per  $1,000)    "14 15.00 

Population    in    1910 4,649- 

INTEREST  at  City  Treasurers  office. 


(Compiled  by  the  Commercial  and  Financial  Chronicle.) 


120 


CALIFORNIA— OREGON 


SOUTH  SAN  JOAQUIN  IRR.  DIST. 

A    district    in    San    joaguin    County.      The 
bonds  of  1914  are  part  of  an  issue  of  $790,000. 

Irrigation    Bonds. 

5s'10  J-J   $l,875,000c July     1  '31-'40 

5s'13J-J     1,170,000c Apr    18      1943 

(Bonds    are    subject    to    call    at    any    interest 
time  by  mutual  agreement.) 

Reservoir-Construction  Bonds. 

5s  '14  JJ    $790,000 July   1  '34-M3 

BONDED  DEBT  April  '14 $3,835,000 

Assessed  valuation,  real,  '13 3,000,000 

(Assessment  about  30%   actual  value.) 
Total  tax  rate  (per  $1,000)   '12 $40.00 

INT.   at  Dist.   Treas.    office  in   N.    Y. 


STOCKTON. 

Stockton  is  in  San  Joaquin  County.     Incor- 
porated Aug.  5,  1850.     Population  1910,  23,253. 

Sewer  Bonds. 

4s  $35,100 Sept  1  '40 

4s  31,000 Nov    1  '46 

Street-Improvement  Bonds. 

5sg'06  F-A    $154,275c Feb  1  '47 

BONDED  DEBT  April  1  '14 $      222,375 

Assessed  valuation  '13   (2-3  act.)..  26,269,804 
City  tax  rate  (per  $1,000)  '14 15.00 

INTEREST  at  First  National  Bank. 


STOCKTON    SCHOOL    DISTRICT. 

(Part  due  each  year.) 

6s '11   M-N    $72,000c 1936 

5s  July     $52,500c July  1  '15-'21 

(Part  due  yearly  on  July  1.) 
High-School  Bonds. 

5s '13      J-J    $98,000c 

Grammar-School  Bonds. 

5s '13      J-J     $498,000c 

(Part  due  yearly  on  July  1.) 
TOTAL  BOND.  DT.  March  '14...$      720,500 
Assessed  valuation  '14   (3-5  act.)..   22,177,155 

School  tax   (per  $1,000)   '14 9.00 

INTEREST  at  Stockton  Savings  Bank. 


SUTTER   CO.    LEVEE  DIST.   No.    1. 
This  district  (P.  O.  Yuba  City)  is  in  Sutter 
County. 

6s  '08  s-a   $230,000c 1933 

6s  '10  s-a     100,000c 1935 

BONDED  DEBT  March  '14 $    330,000 

Assessed  valuation  '13   (40%  act.)..   3,105,220 
Tax  rate  (per  $1,000)  '13 45.00 


TULARE. 

This  city  is  in  Tulare  County. 

The  _  voters  in  February,  1913,  defeated  a 
proposition  to  purchase  local  water  company 
for  $44,000. 

Water  Bonds. 
5s gr '12  J-D    $100,000c Dec  1  '17-'49 

Municipal-Improvement  Bonds. 

5sg'12  J-D        $7,500c Dec  1  '14-'28 

5sg:'12J-D  1,900c Dec  1  '14'32 

BONDED  DEBT  May  '13 $    186,000 

Assessed  valuation   '12 1,407,620 

Tax  rate   (per  $1,000)   '12 16.00 

Population    in    1910 2,758 

INTEREST  at  City  Treasurer's  office. 


TURLOCK. 

This  city  is  in  Stanislaus  County. 


.$25,650 1949 

.     9,750 1920 


Sewer  Bonds. 

5s  '09  

Ss'10  

Water  Bonds. 

5s '09  $24,700 1949 

5s '10  14,625 1920 

Water  and  Sewer  Bonds. 

..  '12  $25,000 

BONDED  DEBT  April  1  '12 $      74,725 

Assessed  valuation   '12 1,113,045 

Total  tax  rate  (per  $1,000)   '12 13.70 

Population  in   1910 1,573 


TURLOCK  IRRIGATION  DIST. 

This    district    (P.    O.    Turlock)    is    in    Stan- 
islaus County, 

5s '02  J-J     $1, 156,000c July  1  '22-'41 

5s '05  J-J  200,000c Jan    l'26-'35 

5s '10  J-J  100,000c July   1  '31-'40 

5s '11  JJ        1,040,400c 1932-1941 

BONDED  DEBT  May  '14 $  2,396,400 

Assessed  valuation  '13   (45%  act.).    10,099,470 
District  tax  rate  (per  $1,000)   '13..  35.50 

Population   in    1913    (est.) 16,000 

INTEREST  at  Commercial  Bank,  Turlock. 


VALLEJO. 

This  city  is  in  Solano  County.  Incorporated 
March  30,  1868.  Commission  government 
adopted  Feb.  21,  1911. 

Refunding  Bonds. 
5s '95  F-A    $16,800c Aug    1  '15-'35 

Water  Bonds. 

5s '02  M-N  $36,000c May  1 

5s'05M-N     49,500c May   1 

5s'08  M-S  55,000c Sept  1  '15-'25 

5sg'll...   76,053c Jan  1  '15-'31 

Harbor-Improvement  Bonds. 

5^s'14  M-N    $142,000 May  1  '15-'35 

BONDED    DEBT   April    23    '14 $    248,600 

Assessed  valuation   '13    (3-5   act.)...   5,525,108 

City  tax  rate   (per  $1,000)   '13 17.50 

Population,     1910     11,324 

INTEREST  at  City  Treasurer's  office. 


'15-'22 
'15-'25 


VALLEJO    HIGH    SCH.    DIST. 

5s  '10  s-an    $54,000c 1914-1935 

BONDED    DEBT   March    '14 $      54,000 

Assessed  valuation  '13   (65%  act.)..   4,425,672 

School  tax  rate  (per  $1,000)   '13 5.70 

Population    in    1913     (estimated) 13,000 

INTEREST  at  County  Treasurer's  office. 


VAN  NUYS  GRAM.  SCH.  DIST. 

A  district  in  Los  Angeles  County. 

Building  Bonds. 

5s  '12  Feb  $50,000 

TOTAL  BOND.  DT.  April  1  '14...$      50,000 
Assessed  valuation   '13 4,486,340 


VAN    NUYS   HIGH    SCH.   DIST. 
5^s'14  s-an    $120,000 1915-1954 

VENICE. 
This   city   is   in    Los   Angeles   County.     In- 
corporated Feb.   17,   1904. 

BONDED  DEBT  March  '14 $        68,000 

Sinking  fund   2,136 

Assessed  valuation  '13-'14 11,716,659 

(Assessment  about  60%  actual  value.) 

City  tax  (per  $1,000)  '13 $10.00 

Population  in   1914   (est.) 6,500 


INTEREST  at  First  National  Bank,  Venice. 
VENICE  CITY  SCHOOL  DIST. 

Building  Bonds. 

5s  $92,000 

BONDED  DEBT  April  '14 $    102,000 

Assessed   valuation    '13 7,334,000 

INTEREST  at  County  Treasurer's  office. 

VENICE  UNION  HIGH   S.  D. 
Building   Bonds. 
5s '13  F-A  $250,000 Aug   1   '19-'52 


VENTURA   COUNTY. 

Ventura  is  the  county  seat. 

Court-House  Bonds. 
5sg'12  F-A   $140,000c Feb  1  '15-'42 

Bridge  Bonds. 

5s     '11  F-A    $252,000c Feb 

BONDED  DEBT  Sept  20  1914...$ 
Assessed  valuation  '14  (3-5  act.)...    30,971,620 
State  &   Co.   tax   J  Inside    13.00 

(per  $1,000)  '13  |  Outside 16.00 

Population    in    1910 18,347 

INTEREST  at  County  Treasurer's  office. 


1  '15-'42 
392,000 


VENTURA    UNION    HIGH    S. 
Building  Bonds. 


D. 


5s  g  '11  J-J     $66,000c 1915-1936 

BONDED  DEBT  Sept  20  '14 $      66,000 

Assessed  valuation  '14-'15    (3-5  act.)   7,455,535 
School   tax   rate   (per  $1,000)    '14-'15  3.40 

Population  in  1913   (est.) 6,000 

INTEREST  at  County  Treasurer's  office. 


VISALIA. 

County  seat  of  Tulare  County.    Incorporated 
Feb.   27,   1874.     Bonds  are  taxable. 

School  Bonds. 
6s  July       $5,750c 1937 

Sewer  Bonds. 
5s  J-T     $54,000c 1940 

Sewer,    Bridge   and    City-Hall   Bonds. 

5s  J-J  $128,100c 1948 

BONDED  DEBT  Sept  21  '14 $    187,850 

Assessed  valuation  '14   (3-5  act.)...   3,608,335 

Total  tax  rate   (per  $1,000)   '14 14.40 

Population    in    1910 4,831 

INTEREST  at  First  Nat.   Bank,  Visalia. 


VISALIA  HIGH  SCHOOL  DIST. 

5s '12   $19,000 

6s '10 50,000 


WHITTIER. 

City  is  in  Los  Angeles  County.  Incorporated 
Feb.    21,    1898. 

Water-Works  Bonds. 

5s  g  J-J     $25,OOOc Jan 

5s  g '05  J-D       85,250c June 

5s  M-S         3,250c Mch 

Sewer  Bonds. 
5s    '09  A-O     $96,250c ,  June  1  '15-'49 

Fire  and  Reservoir. 

5s  A-O       $3, 500c Apr 

BONDED  DEBT  Sept  30  '14 

Floating   debt    

Sinking    fund 


1  '15-'39 
1  '15-'45 
1  '15-M0 


1  '15-'42 

213,250 

5,126 

21,539 


Assessed  valuation  '14   (y2   actual)..   3,986,631 

City  tax   rate    (per  $1,000)   '14 16.10 

Population,    1910    4,550 

INTEREST  at  City  Treasurer's  office. 


STATE  OF  OREGON. 

ITS 

DEBT,  RESOURCES,  ETC. 
Organized  as  a  Territory  (Act  Aug.  14  1848).. Aug.  14  1848 

Admitted  as  a  State  (Act  Feb  14  1859) Feb.  14  1859 

Total  area  of  State  (square  miles) 96,030 

State  Capital   Salem 

Governor  (term  expires  in  January  1915) Oswald  West 

Secretary  of  State  (term  expires  Jan.  2  1917). B.  W.  Olcott 
Treasurer  (  term  expires  Jan.  2  1915) T.  B.  Kay 

LEGISLATURE  meets  biennially  in  odd  years  on  the  second 
Monday  in  January,  and  there  is  no  limit  to  length  of  sessions ;  but 
members  of  the  Legislature  can  draw  pay  only  for  40  days'  services  in 
the  aggregate. 

HISTORY  OF  DEBT. — For  the  early  history  of  Oregon's  State 
debt  see  Commercial  and  Financial  Chronicle's  "State  and  City  Sup- 
plement" of  April,  1893,  page  146. 

Today   Oregon   has  no  bonded   debt. 

On  Jan.  1,  1914,  the  amounts  held  in  the  irreducible  trust  funds 
were  as  follows :  School  fund,  $6,405,950.64 ;  Agricultural  College 
fund,  $202,113.99;  and  University  fund,  $103,635.96.  On  the  same 
date  the  cash  on  hand  amounted  to  $710,314.14. 

VALUE  OF  TAXABLE  PROPERTY  AND  TAX  RATE  — 

Taxable     Tax  per|  Taxable    Tax  per 


Years  Property 

1913 $954,282,374 

1912 905,011,667 

1911 890,644,164 

1910 844,887,708 

1909 694,727,632 

1908 598,133,963 

1907 581,558,918 

1906 427,379,978 

1904 188,058,281 


$1,0001  Years 


$4.36 
1.20 
3.44 


Property 


$1,000 
$7.06 
5.13 
5.70 
4.80 
4.34 
3.10 
7.00 


1903 $173,559,889 

1902 148,099,602 

1900 117,804,874 

1.64|1895 144,445,426 

2.2011890 114,077,788 

2.13|1885 77,188,694 

1.98|1880 48,483,174 

2.39|1875 41,436,086 

5.45| 

DEBT  LIMITATION.— Constitutional  inhibitions  as  to  the  crea- 
tion of  debt  are  all  found  in  Article  XL,  sections  5  to  10  inclusive,  of 
the  Constitution  of  1857.     We  quote  these  sections  in  full. 

SECTION  5. — Restrictions  upon  Municipal  Corporations. — Acts  of 
Legislative  Assembly  incorporating  towns  and  cities  shall  restrict  their 
power  of  taxation,  borrowing  money,  contracting  debts  and  loaning 
their  credit. 

SECTION  6.— State  not  to  be  Stockholder  in  Company.— The  Stat< 
shall  not  subscribe  to  or  be  interested  in  the  stock  of  any  company, 
association  or  corporation. 

SECTION  7. — Credit  of  State  not  to  be  Loaned — Limitation  upon 
Powers  of  Contracting  Debts. — The  Legislative  Assembly  shall  not  lend 
the  credit  of  the  State  nor  in  any  manner  create  any  debt  or  liabilities 
which  shall  singly  or  in  the  aggregate,  with  previous  debts  or  liabilities, 
exceed  the  sum  of  fifty  thousand  dollars,  except  in  case  of  war  or  to 
repel  invasion  or  suppress  insurrection,  or  (according  to  an  amend- 
ment of  1912)  to  build  and  maintain  permanent  roads;  and  the 
Legislative  Assembly  shall  not  lend  the  credit  of  the  State  nor  in  any 
manner  create  any  debt  or  liabilities  to  build  and  maintain  permanent 


roads  which  shall  singly  or  in  the  aggregate,  with  previous  debts  or 
liabilities  incurred  for  that  purpose,  exceed  two  per  cent  of  the  assessed 
valuation  of  all  the  property  in  the  State;  and  every  contract  of 
indebtedness  entered  into  or  assumed  by  or  on  behalf  of  the  State  in 
violation  of  the  provisions  of  this  section  shall  be  void  and  of  no  effect. 

SECTION  8.—  State  not  to  Assume  County  Debt,  Except  in  What 
Case. — The  Slate  shall  never  assume  the  debts  of  any  county,  town 
or  other  corporation  whatever,  unless  such  debts  shall  have  been 
created  to  repel  invasion,  suppress  insurrection  or  defend  the  State 
in  war. 

SECTION  9. — Prohibition  upon  Municipal  Corporations. — No  county, 
city,  town  or  other  municipal  corporation,  by  vote  of  its  citizens  or 
otherwise,  shall  become  a  stockholder  in  any  joint-stock  company, 
corporation  or  association  whatever  or  raise  money  for  or  loan_  its 
credit  to,  or  in  aid  of,  any  such  company,  corporation  or  association. 

SECTION  10 — Limitation  upon  Powers  of  County  to  Contract  Debts. 
—No  county  shall  create  any  debts  or  liabilities  which  shall  singly  or 
in  the  aggregate,  with  previous  debts  or  liabilities,  exceed  the  sum  of 
five  thousand  dollars,  except  to  suppress  insurrection  or  repel  invasion, 
or  (according  to  constitutional  amendment  of  1910)  to  build  and  main- 
tain permanent  roads  within  the  county;  and  debts  for  permanent 
roads  shall  be  incurred  only  on  approval  of  a  majority  of  those  voting 
on  the  question,  and  (according  to  an  amendment  adopted  in  1912) 
shall  not  either  singly  or  in  the  aggregate  with  previous  debts  and 
liabilities  incurred  for  that  purpose,  exceed  two  per  cent  of  the  assessed 
valuation  of  all  the  property  in  the  county. 

It  will  be  seen  from  the  above  that  the  power  to  limit  the  indebted- 
ness of  municipalities  has  been  relegated  to  the  Legislative  Assembly. 
In  1903  the  Legislature,  acting  under  this  authority,  passed  the  follow- 
ing Act,  Section  2722  of  Bellinger  &  Cotton's  Annotated  Codes  and 
Statutes : 

The  common  council  (of  cities  and  towns)  shall  not  in  any  manner 
create  any  debt  or  liability  which  shall  singly  or  in  the4  aggregate 
exceed  the  sum  of  two  thousand  five  hundred  dollars  without  first 
obtaining  authority  from  the  Legislative  Assembly  of  this  State  to 
contract  a  debt  or  liability  in  excess  of  said  sum. 

The  above  limitation  does  not  apply  to  bonds  issued  in  anticipation 
of  the  collection  of  street  and  sewer  assessments  under  the  authority 
of  any  charter  of  any  city  of  2,500  or  more  inhabitants.  See  sections 
2727  to  2735  of  the  Annotated  Codes  and  Statutes. 

As  regards  school  districts,  the  general  school  law  as  amended  by 
the  State  Legislature  in  1901  (Bellinger  &  Cotton's  Code,  section  3389, 
paragraph  31)  gives  permission  to  school  boards  to  issue  bonds  (pre- 
scribing the  method)  without  special  legislation,  but  stipulates  that 
"in  no  case  shall  the  aggregate  of  bonded  debt  in  any  school  district 
exceed  five  per  centum  of  the  value  of  the  taxable  property  of  any  such 
district."  Further  provision  is  made  (Section  3415  of  the  Code)  that 
the  indebtedness  of  districts  of  the  first  class  (those  having  over  1.000 
children  of  school  age)  located  in  cities  of  over  75,000  inhabitants  shall 
never  exceed  $100,000 — the  5%  limit  mentioned  above  applying  to  all 
districts  of  under  75,000  inhabitants. 

TAXATION  OF  MUNICIPAL  BONDS.— No  legislation  has  been 
enacted,  we  were  advised  Dec.  12,  1911,  by  the  Board  of  State  Tax 
Commissioners,  exempting  from  taxation  bonds  or  other  obligations 
of  the  State  or  its  counties  and  municipalities. 

POPULATION  OF  STATE.— The  population  of  Oregon  has  been 
as  follows  in  the  years  named: 

1910    672,765fl890   313,76711870   90,923(1850    13,294 

1900    413,53611880    174,768|1860    52,465| 


(Compiled  by  the  Commercial  and  Financial  Chronicle.) 


OREGON  CITIES  AND  TOWNS 


121 


ALBANY. 

This  city  is  in  Linn  County. 
6s  j-D     $20,000 June   1    1915 

Refunding  Bridge  4  Sewer  Bonds. 
5s  A-O     $75,O00c 1923 

Sewer  Bonds. 

5s  '13       J-J     $18,000 Jan    1    1928 

(Subject  to  call  after  Jan  1    1923.) 

BONDED   DEBT  July    1913 $    113.000 

Paving  bonds  (add'l)   123,043 

Warrants    outstanding    46,642 

Sinking  fund    7,200 

Assessed  valuation  1912 3,527,850 

Real  value  (est.)    7,000,000 

City  tax  rate  (per  $1,000)  1911 8.00 

Population    in    1910 4.275 

INTEREST  at  fiscal  agency  in  New  York. 


ASHLAND. 

This  city  is  in  Jackson  County.  Bonds  are 
tax-cxenu>t. 

Sewer  Bonds. 
4^s  '04  A-O     $13,000c Apr   1   '15-'27 

Fire  Protection  Bonds. 
$5,000    

Refunding   Water   Bonds. 

5s  '09         J-J)$10.000c July  1  M5'16 

(30,000c July  1   1929 

(The  $30,000  is  subject  to  call  after  '19.) 

Water  Bonds. 
4'As  '05      J-J     $23,000c July  1  1920 

Street  (Red.  after  1  year  from  issue.) 

6s  '11        A-O     $15, 500c Apr    11921 

6s  '09        MS       12.000c Sept  1  1919 

6s  '10  J-J       24.000c July  1   1920 

Electric   Light   Bonds. 

4J4s'08  MS  $40,000c Sept  1   '14-'29 

4tfs  '09       J-J       30,000c Jan      11929 

(Subject  to  call   after  Jan   1    1919.) 
5s  g  '10  J-J     $25,OOOc July  1  1930 

(Subject  to  call  after  July  1   1920.) 

Septic-Tank    Bonds. 
6s  g  '11  M-S     $7,000c Mch  10  1921 

(Subject  to  call  after  March  1    1912.) 

GEN.  BD.  DT.  June  15  '14 $      76.500 

Water  and  light  debt   (add'l) 163,000 

Assessment  debt    (add'l) 204,298 

Assessed  val.  '13  (3-5  act.) 2,880,640 

Total  tax  rate  (per  $1,000)  '13 38.50 

Population     1910     5,020 

INTEREST  payable  in  Ashland  at  Granite 
Sav.  Bank,  Citizens'  Hanking  &  Trust  Co., 
U.   S.   Nat.   Bank  and  First   Nat.    Bank. 


ASHLAND     SCHOOL     DISTRICT     No.     5. 
5s  s-a       $7.0O0r Sept  1  1919 

(Subject   to  call   Sept    1    1909.) 
5s  J-J     $10,000r 1924 

(Subject  to  call  any  time.) 

5-  '11      J-J     $75,OOOr Jan   11931 

(Subject  to  call  $25,000  in  10  years  and  $25,- 
000    in    15    years.) 

BONDED    DERT  Sept   21   '14 $      97.000 

Assessed  valuation  '13  (3-5  act.) 3,488.165 

School  tax  (per  $1,000)   1913 8.70 

Population  in   1914   (est.) ,.  7,000 

INTEREST   payable    at    Nat.    Park    Bank, 
N.  Y.  City,  or  in  Ashland. 
ASTORIA. 

Astoria  is  in  Clatsod  County.  Incorporated 
1865.  Commission  government  rejected  Dec. 
13,    1911. 

Funding   Bonds,    (x) 
6s  g  A-O  $90.000c Apr  1917 

Refunding  Bonds,  (t) 
5s  'II    M-N    $50,000c Nov  1   1931 

Water    Bonds.    (•) 

5s&6s  J-J  $300,000c 1922  &  192S 

5sg'll    s-a     45,000c 1931 

Bulkhead  (Red.  beg.  Dec.   1923). 
5sg'13  J-D  $100,0O0c Dec  1  1953 

Dam  and   Reservoir   Bonds.    (*) 

5sg'12  J-J   $80,OO0c Jan  1   1932 

BONDED    DEBT    Sept    19    '14 $    665,000 

Assessed      valuation      '14 7,566,019 

Total    tax    (per    $1,000)    '13 44.00 

Population    in    1910    9,599 

INTEREST  on  bonds  marked  (*)  at  Chase 
National  Hank.  N.  Y.j  (.r)  at  Kountze  Bros., 
N.  Y.  City;  (t)  at  National  Park  Bank,  N.  Y. 

ASTORIA  SCHOOL  DISTRICT  NO.   1 

6s '91    J-J    $  5.000c July    1   1921 

5s '10  J-D     75,000   June  1   1930 

I  Subject   to  call   after  June    1    1920.) 

Building  Bonds.  (Red.  beg.  July  1  '24.) 
is '14    J-J     $20,000 July    1   1934 

Refunding   Bonds. 

5s '03    FA    $27,000c 1923 

(Subject   to   call   after   Aug    1    1913.) 

5s '04   A-O   $12,000c Apr  1   1924 

(Subject  to  call  after  April   1    1905.) 

BONDED    DEBT    Sept    '14 $    120,000 

Assessed   valuation    '13    (3-5    act.)..   5,154,968 

School   tax    (per   $1,000)    '13 8.50 

Population  in  1914  (estimated) 15.000 

INTEREST  on  issues  of  1891  and  1910 
payable  in  New  York;  on  refunding  bonds  at 
office  of  County  Treasurer. 

BAKER  CITY. 
County  seat  of  Baker  County.     Incorporated 
1874.      Commission    government    was    adopted 
Oct.  3,  1910.     All  bonds  are  tax-exempt. 

Sewer  Bonds. 
5s '03  J-J    $12.000c July  1  1923 

Water    Bonds. 

5s  g  '00  J-J     $100,000c July  1   1920 

5s     '01   M-S      20,000c Sept  3  1921 

5s     '02    A-O    45,200c Apr    2  1922 

^5s     '05   A-O      10,000c Apr  30  1927 

Ssg'll  J-J         90,000c July   1    1921 

5s     '14  M-S      98,851c Mar  1   1934 

Refunding   Water    Bonds. 
5sM0    A-O    $25,000c April  4  1930 

Reservoir  Bonds. 
5sg'll    J-J    $25,000c July  1   1921 

New  City   Hsll   Bonds. 

5s     '03  J-J  $46,000c July  1   1923 

5s  g '04  J-D    12.000c Dec  21   1924 

Street    Intersection    Bonds. 


5sg'll  J-J    $23,500c July  1   1931 

5s     '12  ..        5,503.72 

5s     '13...       8,826.36 

Electric-Light    Bonds. 

5sg'13  J-D  $25,000 Dee  1   1933 

GEN.    BONDED  DEBT  July   1   '14$    546,830 

Assessment     debt     (additional) 200,103 

Sinking  Fund 45,000 

Assessed  valuation  '13  (abt.  act.)..  5,768,060 
Population    1910    6,742 

INT.  payable  in  Baker  City  and   N.    Y. 

BAKER  CITY  SCHOOL  DISTRICT  NO.  5 

..s'88   ...   $20,000 

..s'99   ...      15,000 

..s'01   ...     15,000 

School  Bonds  (  Red.  begin  in   1916). 
5sg'08   J-J    $20.000c 1926 

Heating  and  Sanitary  Plant  Bonds. 

5s '09   s-a   $25, 000c 1929 

(Subject    to    call    after    1919.) 

Ref.   Bonds   (Red.  beg.  in   1921). 

5s  '11    J-D    $45,000 June  1   1931 

BONDED  DEBT  Apr   1   '14 $      92,000 

Assessed  valuation   '13    (30',i    act.).   6,362,000 

School  tax  (per  $1,000)   '13 7.00 

Population   in    1910    (estimated) 8,000 

INTEREST  payable  in  Baker  City  or  N.  Y. 

CLATSOP    COUNTY. 

Astoria  is  the  county  seat.  Bonds  below 
declared  valid  by  State  Supreme  Court. 

Road  Bonds. 

5s'14AO     $400.000 Apr     1     1934 

BONDED  DEBT  Sept  19  '14....$  400,000 
Assessed  valuation  '13  (equalized)  35,019,969 
Population  in    1910 16,106 

INTEREST  at  State  fiscal  agency  in  N.  Y. 
City  or  at  County  Treasurer's  office. 

COLUMBIA  COUNTY. 

St.  Helens  is  the  county  seat. 

Road  Bonds. 

5s  g  '14  A-O  I  $  60.000c Apr    1    1919 

1_  300,000c   Apr  1  '24-29-34 

BONDED  DEBT  Apr  '14 $      360,000 

Assessed  valuation  '13 18,067,830 

Total  cash  valuation 24,086,677 

Population  in   1910 10,580 

INT.  at  offi.  of  Co.  Treas.  or  in  N.  Y.  City. 

CORVALLIS. 

This  city  is  in   Benton  County. 

Water  Bonds  (Red.  beg.  in  1916). 

5s  '06  J-J     $75,000 Jan  2  1936 

5s '14  A-O      7,000 Apr  1   1954 

Sewer  Bonds. 
5s '10  J-J    $144,000 July   1    1950 

Fire-Department   Bonds. 
5s '10  J-J    $16,000 July    1    1950 

Street-Improvement  Bonds. 
Ss'10'11 $28,746.51 40    years 

Bridge   Bonds. 
5s '13  J-J  $2,500 Jan  1   1953 

Refunding   Bonds. 

5s  '13  J-J  $51,397.08 1953 

GEN.  BONDED  DEBT  Jan  27  '13.$    242,644 

Water  debt   (additional) 75.000 

Assessment   bonds    (additional) 135,515 

Warrant   debt    51,397 

Assessed  valuation   '13 2,273,749 

Actual     value     (estimated) 4,500,000 

Tax   rate   (per  $1,000)    '12 35.70 

Population    in    1910 4,652 

While  the  water  bonds  are  direct  liabilities 
of  the  city,  provision  is  made  in  the  law  for 
fixing  the  rate  annually  at  a  sum  sufficient  to 
cover  the  expenses,  pay  interest  on  bonds  and 
provide  a  sinking  fund  that,  by  annual  retire- 
ment, will  pay  the  bonds  in  full  at  maturity. 

DALLES  CITY 

This  city  (P.  O.  The  Dalles)  is  in  Wasco 
County. 

Sewer  Bonds. 

5s  '12  J-J    $65,000c July  15   1933 

6s         M-N      8,250c 1924 

Sidewalk  and  Improvement  Bonds. 
6s        J-D       $6,700 1924 

Water  Bonds. 

6s '91  J-D     $25,000c 

5s '03  M-N     50,000c 

Refunding   Bonds. 
4s '95  M-N    $54,500c May  1   1920 

City  Hall  Bonds. 
6s '08  M-N    $28,900c May   1   1918 

General  Improvement  Bonds. 
5s'13    12,000 1933 

Street    Bonds. 

6s         F-A     $  9,000C 1920 

6s         M-S       16,000c 1920 

6s        J-D  8,400c 1920 

Street    and    Sewer    Bonds. 

6s       M-N    $45,OOOc 1924 

GEN.   BD.   DEBT  Sept  24  '14 $    156,650 

Water    bonds     (additional) 75,000 

Assessment  debt   (additional) 85,100 

Sinking  fund  Aug  31    '14 95,887 

Assessment  valuation  '13   (70',r  act.)  4,211,000 

Total  tax  (per  $1,000)  '13 25.25 

Population     1910     6,834 

INTEREST  on  bonds  of  1912  payable  at 
State  fiscal  agency  in  N.  Y. ;  other  interest 
at  San  Francisco,  Cal.,  N.  Y.  Security  & 
Trust  Co.,  N.  Y.,  and  at  City  Treasurer's 
office. 


..June  30  1916 
.Nov   1   '17'26 


EUGENE. 

The  city  is  in  Lane  County.  Incorporated 
in  1864.  The  city  owns  property  valued  at 
$842,000. 

Refunding  Bonds. 

t.Mfi  |$50,000c   Aug  1  1915 

£•  ii    in'    100.000c    Aug   1720&'30 

5s   11  J-"  I  uo.OOOc    Dec  1    1936 

Sewer  Bonds. 

4s '03   $     6.000c Oct20'15&*18 

4s'05   5,000c Oct20'15&'18 

5s'12  M-S     183,500c Sept  1    1942 

Paving   Bonds. 

5s    12  s-a     50,000c Tune  1  1922 

6s'13J-J     25,000c July    11923 


6s   14  F-A  43.950c Feb     1  1924 

(Subject  to  call  after  Feb  1   1915.) 

6s  '14  J-D     $20,100c June  1  1924 

(Subject  to  call  after  June  1  1915.) 

Water  Bonds. 

5s '08   ....  $300,000c Jan    1    1948 

5s'10 60,000c '20,  '30  &  '40 

5s '14   100,000c 1939 

Electric-Light    Bonds. 
6s '11  s-an  $25,000c Oct  1   1921 

Light,  Power  and  Water  Bonds. 
S'As^H    J-D    $57,000c Dec  1    1926 

City-Hall-Site  Bonds. 
5s '12 $15. 500c July  1   1922 

Armory  Building   Bonds. 

5s  '14  July  $25,000. July  1   1924 

TOT.  BD.  DEBT  July  19  '14 $  1,185,430 

Bancroft  bonds  (incl ) 153,430 

Water  and  power  bonds  (incl).,..        442,000 

Floating  debt  Apr  1  '14 46,523 

Sinking  funds  and  cash 135,295 

Assessed   valuation   '13    (equalized)     9,347,813 

Real   value    (estimated) 12,000,000 

City  tax  rate   (per   $1,000)    '13 12.50 

Population     1910 9,009 

EUGENE  SCHOOL  DISTRICT   NO.  4. 

Site  and  Building  Bonds. 

4s         s-a    $18,500r 1921 

4s         s-a      32,OOOr 1924 

4^s     s-a      40,000c 1929 

5s  '13  J-J     20,000c tan  1  1933 

(Subject  to  call  beginning  Jan   1    1923,) 

5s '14  M-N    $110,000 May  1   1934 

(Subject    to   call    after    May    1    1924.) 

BONDED  DEBT  May  '14 $      220,500 

Assessed  val.  '13   (real  &  pers.)...     9,347,813 

Real  valuation  (estimated) 1 1,684,760 

Population  in  1914  (estimated) 14,000 

INTEREST  on  1914  bonds  at  State  fiscal 
agency  in  New  York  City. 

GRANT'S    PASS. 

This  city   is  in  Josephine   County. 

$200,000  railroad  bonds  given  below  upheld 
by  State  Supreme  Court  on  April  28,  1914. 

Sewer  Bonds. 
5s         ...  $19,000 1940 

Fire   Auto    Bonds. 
6s         ...    J5.500 1921 

Warrant-Funding  Bonds. 
5s '12  A-O    $80,000 Apr  1   1932 

Municipal  R.   R.   Bonds. 

[  $  15,000  1939 

6s  '14  J-J  {     100,000 1940-1943 

1      85,000   1944 

BONDED   DEBT  Sept  22  '14 $    304,500 

Warrant  debt  Sept   1  s14 2,392 

Assessed  valuation  '13 3,000,000 

Real  valuation 6,500,000 

Population  in  1910 3,980 

INTEREST  payable  at  City  Treas.  office. 

HOOD   RIVER 

This  city  is  in  Hood  River  County. 

Water  Bonds. 
5^s'12  J-J     $36,000c July  1   1922 

Street-Improvement  Bonds. 

6s '13  J-D    $10,805.36 Dec  22  1923 

(Subject    to    call   any    interest    paying    period 

after  one  year.) 

GEN.    BD.    DEBT   Sept    19   '14 $    126,000 

Assessment    debt    (additional) 110,420 

Sinking   fund    (cash) 13,419 

Assessed  valuation   '13 2,184,151 

Approximate   value    3,375,626 

Population     in     1910 2,331 

HOOD    RIVER   IRRIGATION    DISTRICT. 

A  district  in  Hood  River  County. 

Completion  Bonds. 

6sg'll    $170,000c 1922-1931 

BONDED   DEBT  Apr  26  '12 $170,000 

Assessed   valuation    ( f$    act.)    '11 950.000 

District  tax    (per  $1,000)    '11 13.00 

INTEREST  in  Portland,  Chicago  or  N.  V. 
City   at    National   Park    Bank. 

JACKSON    COUNTY. 

Jacksonville  is  the  county  seat. 

Road  Bonds. 

Ss'13    M-N    $500,000c Nov  1  1933 

BONDED  DEBT  Sept  1  '14 $      500,000 

Warrant  debt 473,720 

Assessed  valuation  '14  (estimated).   36,000,000 

Tax   rate   (per  $1,000)    '13 15.00 

Population   in    1910 25,756 

INTEREST  payable  at  fiscal  agency  of 
State  of  Oregon  in  N.  Y.  City. 

KLAMATH   FALLS. 

This  city  is  in  Klamath  County. 

First  incorporated  in   1889. 

City    Hall    Bonds. 

5s  '14  A-O  $50,000c Apr  1   1934 

BONDED    DEBT    Mar   '14 $    176,793 

Sinking  fund    3,000 

Assessed  valuation  '13    (abt.  act.)..  2,906,893 

City    tax    (per   $1,000)    '13 13.25 

Population   in    1910 2.758 

INTEREST  on  bonds  of  1914  at  fiscal 
agency  in  N.  Y.  City. 

LA   GRANDE. 

This  city  is  in  Union  County.  Incorporated 
Feb.  23,  1885.  Commission  government  ap- 
proved Oct.   1,  1913. 

5s '08  F-A  $160,000c 1929 

(Subject    to    call    after    1918.) 

City  Hall  Bonds   (Red.  beg,  in   1914). 
5s  '04  J-J   $25,000c 1924 

Sewer   (Red.   after   10   vears  from   issue). 

5s'10  ...    $40,000c Feb  1   1930 

5s '11  J-J       10,000c Jan  1   1931 

Ref.  Water  (Red.  beg.  in  1920). 

5s '10  s-a   $49,000c Jan  1   1930 

GEN.    BONDED   DEBT  Mar  '14..$    284.000 

Assessment  debt   (additional) 328,311 

Floating    debt 109.000 

Sinking    fund 40.000 

Assessed  valuation  '13   ()i  act.)....   3,500,000 

City  tax  rate  (per  $1,000)  '13 18.50 

Population    1910    4,843 


(Compiled  by  the  Commercial  and  Financial  Chronicle.) 


122 


OREGON  CITIES  AND  TOWNS 


LA  GRANDE— Concluded. 

INTEREST  on  refunding  water  bonds  is 
>ayable  at  A.  B.  Leach  &  Co.,  N.  Y. ;  on  city- 
lall    bonds   in    Portland,   and   on    sewer   bonds 

at  E.   H.   Rollins  &  Sons,   Boston. 


I 


LA  GRANDE  SCHOOL  DISTRICT  NO.    1. 

Bonds  all  subject  to  call  10  years  before 
maturity. 

High-School   Bonds. 

5s  g        J-D  $  8,000c 1919 

5s  g         A-O       4,000c 1920 

5sg         ID     12,000c '1955 

5sg'10  M-N  75,000c May  2   1930 

School-Site    and    Building    (Tax-exempt). 

5s  g  '13  A-O  $30,000c Apr   1    1933 

BONDED   DEBT   Sept    19   '14 $    127,000 

Assessed  valuation  '12   (H  act.) 3,279  930 

School  tax  rate   (per  $1,000)   '13 12  00 

INTEREST  on  bonds  of  1913  is  payable 
at  National  Park  Bank,  N.  Y.  City  ;  on  other 
bonds  at  County  Treasurer's  office  in  La 
Orange. 


.  McMINNVILLE. 

This  city  is  in  Yamhill  County.  Incorp. 
1882.  City  owns  and  operates  local  water  and 
light  plant.     Bonds  are  exempt  from  city  tax. 

Park  Bonds. 

5s  'OS  J-J       $9,400c Jan     11928 

(Subject    to    call    after   Jan.    1    1913.) 
5s  '10         J-D       $3,000c June  1   192S 

Street   Bonds   (General). 

6s  '14  J-J     $27,00Oc July   1  1924 

6s  '14  12,500 1924 

(Subject   to  call  after  one  year.) 

Water-Main  Bonds. 
6s  '12  J-J     $13,000c July    1    '14-'28 

Water   and    Light    Bonds. 

4J4s'04  M-N  $20,000c Nov    1    1924 

(Subject  to  call   Nov.    1    1919.) 

5s  '06  J-J     $45,S00c Jan      1    1931 

(Subject    to    call    Jan.    1    1921.) 

5  s  '08       A-O     $20,000c Oct     11928 

5s  '08       M-N        10,000c Nov        1928 

5s  '10        M-S       30,000c Mar  1  1930 

6s  '12  J-J       25,000c Jan    1      1932 

(Subject  to  call  after  Jan.    1   1927.) 

BOND  DEBT  Sept   1914 $    194,100 

Assessment    debt    (add'l) 28,500 

Floating  debt 5,000 

Sinking  fund   (conditional) 10,000 

Assessed  val.   '13   (>/2   act.) 1,402,000 

Total  tax   (per  $1,000)    1913 38.00 

Population    in    1910 2  400 

INTEREST  on  4J4s  at  office  of  City 
Treas.  ;  on  5s  at  U.  S.  Nat.  Bank  in  Portland ; 
on  bonds  of  1912  at  fiscal  agency  of  Oregon 
in  New  York. 


MARSHFIELD. 
This  city  is  in  Coos  Co.     Inc.   1874. 

TOTAL  DEBT  Apr  1  '14 $    156.778 

Spec.  impt.  bonds  (incl.) 102,778 

Sinking  funds   15,570 

Assessed  valuation   1913 2,602,259 

Population  in    1910 2,980 


MEDFORD. 

Tins  city  is  in  Jackson  County.  Incorpor- 
ated as  a  town  Feb.  24,  1885,  and  as  a  city 
Feb.  6,  1901.  Re-incorporated  (new  city 
charier)   Feb.  7,   1905. 

Water   Bonds    (Tax-exempt). 

5s  '07         M-S     $45,000c Mar    1   1917 

5s  '08  J-J     355,000c July    1  '23-'38 

City  Hall,   &c,    Bonds   (Tax-exempt). 
6s '08    F-A    $25,OOOc Feb  1  1918 

Refunding  Bonds    (.Tax-exempt). 
5s  '10         F-A     $30,000c Aug  1  1930 

Fire  Apparatus,  &c,   (Tax-exempt). 
5s  '11  A-O     $38,000c Apr  1   1921 

Bridge   Bonds    (Tax-exempt). 

Ss  '12         A-O     $20,000c Oct   1   1932 

GEN.    BD.    DEBT   Sept    1    '14 $    513.000 

Water    debt    (included) 400,000 

Assessment   debt    (add'l) 780,000 

Sinking  fund    44,892 

Assessed   val.    '13    (60%    act.) 5,608.090 

Total   tax   rate    (per  $1,000)    '13....  37.00 

1XT.  on  water  bonds  due  1917  in  Medford ; 
bridge,  city-hall  and  refunding  bonds  in  N. 
Y. ;  all  others  in   Chicago. 


MORROW    COUNTY    S.    D.    No.    1. 

P.   O.   Heppner. 
S'As  '12  J-J     $40,000c July   1    1932 

(Subject    to    call    beginning   July    1,    '22.) 

BONDED  DEBT  Mar  20  '13 $      48,000 

Cash   in   sinking  fund 2,777 

Assessed  valuation   1911 1,123,693 

INT.   at  State  fiscal  agency  in  N.   Y. 


NEWBERG. 

This    city    is    in     Yamhill    Co.     Inc.    Feb. 
21,   1889. 

Water  Bonds. 

6s       '97 $15,000 Jan    1    1917 

4/iS  '06 15,000 June  1  '21  &  '27 

Sewer  Bonds. 
5s       '11 $80,000 Jan     11931 

Improvement  Bonds. 

6s  '13     M-N     $38,489.48 Nov     1,1923 

(Subject   to   call    after    Nov.    1    1914.) 

Water   and    Sewer   Bonds. 

5s  '12 $22,000 Jan    1    1932 

GEN.   BONDED  DEBT  Jan  '14 $150,000 

Assessment  debt   (add'l) 64.902 

Floating    debt     17,010 

Assessed   valuation    1913 921,989 

Tax  rate   (per  $1,000)    1913 13.00 

Popn'ation   in    1910 2,260 

INT.  at   First  Nat.    Bank,  Newberg. 


OREGON    CITY. 
This  city  is  In  Clackamas  County. 
Refunding  Bonds. 
5»     $30,000 1925 


5s     20,000 1933 

5s     50,000 1933 

BONDED   DEBT    Sept      1914 $    100.000 

Assessed    valuation     1911 2,608  000 

Tax   rate    (per  $1,000)    1913 10.00 

Population   in    1910 4  287 


1929 

1929 
1943 
1944 


PENDLETON. 

This  city  is  in  Umatilla  County.  Incorp. 
Oct.  25  1880.  All  bonds  are  tax-exempt  to 
residents  of  State.  Commission  government 
defeated    Dec.    1,    1913. 

General    Bonds    (Red.    beg.    after    20    years 
from  date). 
5s  '99     J-J     $75,000c Julyl 

Water-Works    Bonds. 

5s  '99     J-J     $45, 000c July    1 

5s  '13     J-J  $200,000 July    1 

5s  '14     J-J       40,000 July    1 

Levee  Bds.   (Red.  after  20  yrs.  from  issue). 

5s  '06     M-N     $10,000c Nov    30   1936 

5s  '07      F-A       67,000c Aug      1   1937 

Sewer   (Red.   after  20  years  from  issue) 

5s  '03        J-J     $30,000c July      11933 

5s  '08      F-A       10,000c 1938 

Street   Bonds. 
5  s  '08      F-A     $18,000c 1938 

City-Hall  and  Jail  Bonds. 

5  s  '08      F-A     $40,000c 1938 

BONDED   DEBT   Mar    1914 $    495,000 

Assessed   valuation   '13 5,024,386 

Total  tax  rate  (per  $1,000)   '13 25.00 

Population    in    1910 4  460 

INT.  at  City  Treas.  office,  Harris  Tr.  & 
Sav.  Bk.,  Chicago,  and  Kountze  Bros.,  N.  Y. 


PENDLETON  SCHOOL  DISTRICT  No.  16. 

4{4s    '11    A-O    $100,000 1931 

(Subject  to  call  after   1921.) 

Building  Bonds   (Tax-exempt). 

4'As  J-J     $60,000c 1924 

BONDED  DEBT  Sept   19  '14 $     160,000 

Assessed  valuation  '13  (3-5  act.) 5,582,250 

School   tax    (per   $1,000)    1913 9.00 

Population   in    1911    (est.) 5,000 

INTEREST  at  Nat.  City  Bank,  N.   Y. 


PORTLAND,    A.    L.    Barbur,    Auditor. 

Portland  is  the  county  seat  of  Multnomah 
County.  Commission  government  adopted 
May  3,  1913,  and  upheld  by  State  Supreme 
Court  on  May  28,  1913.  The  cities  of  Port- 
land, East  Portland  and  Albina  were  con- 
solidated in  June,  1891.  Attempted  consoli- 
dation of  Portland  and  St.  Johns  held  illegal 
by    State    Supreme    Court,    March    26,    1912. 

Dock  Bonds. 

4^s  g  '11     M-N     $500.000c Novl 

(Subject  to  call  after  Nov   1    1941.) 


1961 


$2,150,000 May 

100,000 Oct 


1943 
1939 


4s  g 

'04 

T-T 

4s  g 

'09 

l-l 

4s  g 

'10 

l-l 

4s  g 

'11 

l-l 

4s  g 

'11 

M-S 

4s  g 

'12 

A-O 

4s  g 

'13 

1  1922 
1  1925 
1  1934 
1  1939 

1  1940 

2  1941 


1920 
1922 


5s  g 

'87 

FT 

5s  6 

'93 

-r 

4s  g 

'09 

11 

4s  5 

'10 

id 

4s  g 

'10 

M-S 

4s  g 
4s  g 

'11 
'11 

M 

4s  g 

'11 

A-O 

4s  g 

'12 

M-S 

4s  g 

'12 

M-N 

4s  g 

'13 

M-N 

4s  g 

'13 

F-A 

4s  g 

'13 

4s  g 

'14 

F-A 

1921 


1935 
1935 
1936 
1936 
1936 


4^s  g  '13     M-N 

4"^s  g  '14      A-O 

Bridge  Bonds. 

5s  g  '92        J-J     $500,000c Jan 

5s  g  '95      A-O       200,000c Apr 

400,000c Jan 

450,000c Tan 

250.000 July 

500,000c jan 

600,000c Sept   1   1941 

315,000c Oct    1   1942 

55,000c 1943 

City  Hall  Bonds. 

5s  g  ^90        J-J     $175, 000c Tan      1 

5s  g  '92        J-J       500,000c July    1 

General   Bonds. 

6sg'9I         J-D      $40, 000c June  1 

Park  and   Boulevard   Bonds. 

6s  6  '91       J-D     $   50,000c June  1   1921 

4s  g  '08       J-D       500,000c Dec    11933 

4s  g  '11        J-J       250,000c Tuly    11936 

4s  g  '12      A-O       250,000c Oct    1   1937 

Water  Bonds. 

6s  g  '91      M-N  •$250,000c May    1    1921 

'      700,000c Jan     1   1917 

2,200,000c July    1   1923 

250,000c Jan      1    1934 

500,000c June  1 

500,000c Sep     1 

*500,000c Jan     2 

*500. 000c Mch 

*500,000c Oct     1 

*500,000c Mch    1   1937 

*200,000c Nov   1   1937 

100,000c May   1    1938 

75,OOOc Aug   1   1938 

250,000c 1938 

175,000c Feb   2  1939 

Boulevard  Bonds. 

6s  g  '91      J-D       $50,000c June  1 

Ferry  Bonds. 

5s  g  '93      A-O 

5s  g  '03       J-D 

4s  g  '04         J-J 

Funding  Bonds 

5s  g  '98       J-D     $430, 000c Dec    1   1928 

Electric  Light  Bonds. 

6s  g  '91     M-N       S50,000c May  1    1921 

Crematory  Bonds. 

5s  g  '10      M-S       $35,0O0c Septl 

5s  52,200   

Refunding  Bonds. 

4s  g  '03     M-N       $56,500c Mayl 

Fire-Boat   Bonds. 

4s  g  '11        J-J     $125, 000c July    1 

Municipal   Jail    Bonds. 

4s  g  '11     M-N     $200,000 Nov    1   1931 

Auditorium  Bonds. 

4s  g  '13         ...        $35, 000c 1943 

GEN.    BONDS  Sept   1   '14 $16,074,100 

Improvement  debt   15,177.932 

TOTAL  DEBT  Sept  1  '14 31,252,032 

Water  debt   (included) 7,699,000 

Warrants  outstanding  June   1   '14..         682,610 

Assessed    valuation,    real 241.678.410 

Assessed    valuation,    personal 45,383,580 

Assessed   val.,   pub.   serv.   cor 27,043,787 

Total  val.   '13   (yi,   actual) 314,105,777 

City  tax  rate   (per  $1,000)   '13 7.70 

Population    in    1910 207,214 

"These  bonds  are  payable,  principal  and 
interest,  from  the  water  rates,  not  from  taxa- 
tion. 


$50, 000c Apr 

15,000c Dec 

50,000c Jan 


1921 

1  1923 
1  1933 
1  1934 


'14-'20 


1928 
1936 


The  improvement  bonds  are  issued  on  ac- 
count of  street  improvement,  sewer,  street  ex- 
tension and  water-main  assessments  and,  ac- 
cording to  the  city  charter,  are  not  included 
in  the  77c   debt  limit. 

INT.  on  dock  bonds  of  1913  at  City  Treas- 
urer s  office  or  at  fiscal  agency  of  city  in 
«■  Y.  City;  on  others  at  Chase  Nat.  Bk.,  N. 
Y.,  with  exception  of  one  issue,  which  is  pay- 
able at   Chemical   Nat.   Bank,   N     Y 

CITY  PROPERTY.— The  city  owned  prop- 
erty on  Sept  1  '14  valued  at  $26,338,068,  in- 
cluding the  water  works,  which  are  valued  at 
$13,682,696.  Receipts  of  water  works  from 
Dec  1  '13  to  Aug  30  '14  $1,087,364;  operating 
expenses  (including  interest),  $1,104,276. 

PORTLAND    SCHOOL    DISTRICT    No.    1. 

District   No.   31    Bonds. 
6s    .'91       J-D       $10,000c June     11916 

District    No.    1    Bonds    (All    redeemable    10 
years  before  maturity). 

4Hs       '08     A-O     $250,000c Oct   1    1928 

4'As  g  '10     A-O       350,000 Oct   1   1930 

4!^s       '12      J-D       150.000 Dec  2  1932 

District  No.   12  Bonds. 

6s '05    M-S    $6,000c Septl   1915 

BONDED   DEBT   Sept   '14 $        770,000 

Sinking   fund 55,044 

Assessed  valuation  '13    ('A   act.)..   316,180]443 

School    tax    (per   $1,000)    '14 7  50 

Population   in    1914    (estimated) 247,000 

INTEREST  is  payable  in  N.  Y.  City  or 
Portland. 


THE    PORT    OF    PORTLAND. 

Incorporated  in  1891.  Limits  include  con- 
solidated City  of  Portland  and  appioxim?leIy 
half  area  and  97%  of  valuation  of  the  territory 
of  Multnomah  Co.  Bonds  are  tax-exempt  to 
residents. 

River  Improvement  Bonds. 
5sg     J-J  $350,000c Jan    11922 

Dry   Dock    Bonds. 

4s  g     J-J  $185,000c July  1   1933 

4s  g     J-J     215,000c Jan    1    1934 

BONDED  DEBT  Sept  '14 $        750,000 

Sinking  fund  Mar   18  '14 207,290 

Assessed  valuation  '13    (70%   act.)   333,452,492 

Tax    rate    (per    $1,000)    '13 1.85 

Population  of  district  '14   (estimated) .  .270,000 

INTEREST  at  U.  S.  Nat.   Bank,  Portland. 


PORT   OF   ASTORIA. 

A  district  (P.  O.  Astoria)  in  Clatsop  Coun- 
ty. The  bonds  below  are  part  of  an  issue  of 
$800,000. 

Municipal  Harbor  Bonds. 

f  $150,000 1924  &  1929 

5sg'14   J-J{     150,000 1934  &  1939 

I    100,000    1944 

TOTAL  DEBT  Sept  23  '14 $      400,000 

Assessed  valuation    '13    (3-5  act.)..    35,019,969 
Population   in    1910 16,106 

INTEREST  at  State  fiscal  agency  in  N. 
Y.    City. 


PORT  OF  COOS  BAY. 

P.  O.  Mavshfield. 

Series  *'A"  Improvement  Bonds. 

5s  g  '13  J-J  $600,000c Jan   1933-1956 

BONDED  DEBT  Mch  1  '14 $    300,000 

Assessed  valuation  '13 9,140,749 

(Assess,   abt.    1-5   to   1-4  act.   value.) 

District  tax  (per  $1,000)  '13 3.00 

Population   in    1914    (estimated)    15,000 

INTEREST  at  Oregon   fiscal  agency  in  N. 
Y.     (National  Park  Bank.) 


PORT  OF  NEHALEM. 

A  district  in  Tillamook  County. 

Harbor  Improvement  Bonds. 

6s  g  '10  J-J  $  30,000c July    1    '15-'20 

6s  J-J     235,000c 1927-1937 

6s  J-J       25,000c 1921-1926 

BONDED    DEBT  July    1    '14 $    290,000 

Assessed  valuation  '13   (35%   act)..   3,810,000 
Population    in    1913    (estimated) 2,500 

INTEREST  on  first  two  issues  payable  at 
Kountze  Bros.,  N.  Y. ;  on  third  issue  at  Nat. 
Park   Bank,   New   York. 


PORT  OF  SIUSLAW. 

A  district  (P.  O.  Florence)  in  Lane  County. 
Organized  June  15   1909. 

Harbor-Improvement  Bonds. 

5s '09  J-J    $  85,000c July    1   '19-'29 

6s  '11   J-J      115,500c July   1   '21'31 

BONDED  DEBT  Sept  22  '14 $    200,500 

Assessed  valuation  '13    (A   act.) 4,300,000 

INTEREST  pay.  at   Kountze   Bros.,   N.   Y. 

PORT   OF   TILLAMOOK. 

A  district   in   Tillamook   County. 

Organized    in    1899    by    the    Legislature. 

Water-Front  and  Channel  Bonds. 
6sg'll  J-J  $214,000 July   1  '21-'31 

Bar-Improvement    Bonds. 

6sg'll  T-J  $236,000 July   1  '21-'31 

TOT.    B'D.    DEBT  May  '13 $    450,000 

Assessed  valuation    ('A   act.)    '11 7,270,000 

Population     1912,     (estimated) 3,000 

INTEREST  payable  in  Tillamook  or  at  of- 
fice of  State's  fiscal  agent  in  N.  Y. 

PORT    OF   TOLEDO. 
A   district    in    Lincoln    County. 
Improvement    Bonds. 

6s'10g  J-J   $50,000c Nov    1    1930 

(Subject    to    call    after    Nov.    1    1920.) 

BONDED   DEBT  Oct    16   '14 $      50.000 

Assessed    valuation    '14    (J^act.) 1,388,246 

INT.    at    Lincoln     Co.     Bk.,    Toledo,    Ore. 

ROSEBURG. 

This  city  is  in  Douglas  Countv.     Incorporat- 
ed  Oct.   3,   1872.      Population,   1910,   4,387. 

Street  and   Bridge   Bonds. 
5s      '09 $35,000 1929 

Street  Bonds. 
4^s'10 $40,000 1930 


(Compiled  by  the  Commercial  and  Financial  Chronicle.) 


OREG  ON— WASHINGTON 


123 


ROSEBURG — Concluded. 

Refunding     Bonds. 

5s'10 $25,000 1930 

GEN.    BD.    DEBT  Sept  21  '14 $    100,000 

Improvement    bonds    (additional). ..      202,307 

Assessed  valuation   '13 3,258,490 

City  tax    (per  $1,000)   '13 8.00 

INTEREST  on  street  and  bridge  5s  and 
street  4J4«  at  Douglas  Nat.  Bank,  Roseburg; 
refunding  bonds  at  Roseburg  Nat.  Bank,  Rose- 
burg and  on  improvement  bonds  at  City 
Treasurer's  office. 


ST.  JOHNS, 
is  in  Mult 


tnomah  County. 


This  city 

City-Hall  Bonds. 
6i'i'->    $10,000 July  9  1916 

City    Dock    Bonds. 
6s  '08     $60,000 Apr  21,1928 

Ferry  Bonds. 

6s  '11    $6,000 Mch  21  1921 

GEN.    BD.   Debt   Mar   18   '14 $      76,000 

Improv.    bonds    (additional) 270,287 

Assessed  valuation  '13 3,933,650 

City   tax    (per   $1,000)    '13 9.00 

Population    in    1910 4,872 

SALEM. 

This    city,    the    capital    of    the    State,    is    in 
Marion      County.      Incorporated     Jan.,     1857. 
are    tax-exempt. 
City  owns  property  valued  at  $350,000. 
Refunding    Bonds. 


5s  '10  J-J  $63,050r Jan  20  1920 

(Subject  to  call  after  1911.) 

5sg'14  J-J    $60,000 Jan   1    1934 

5sg'14  A-O  30,000 Apr  1  '15-'24 

Sewer   Bonds. 

Ss'10  J-J     $19,000r Jan  20  1920 

(Subject    to    call   after    1911.) 
Ssg'13  M-N    $456,000 May  1  -'15-'33 

Refunding  Bridge  Bonds. 

6s '10  A-O  $20.000c Oct  8  1920 

GEN.    BD.   DEBT  Sept   19  '14 $      648,050 

Improvement    bonds    (additional)..        485,226 

Warrants  outstanding 88.626 

Cash    on    hand 125,133 

Assessed   valuation   '13    (.H   act.)..   12,435,345 

Total  tax  (per  $1,000)  '13 33.20 

Population   in    1910 14.095 

INTEREST  on  sewer  bonds  of  1913  at  City 
Treasurer's  office  or  at  fiscal  agency  in  N.  .\  . ; 
on  refunding  6s  at  Fourth  National  Bank,  N. 
Y. ;   others   in   Salem. 

SALEM    SCHOOL   DISTRICT   NO.   24. 

Bonds  all  redeemable  10  years  before  final 
maturity. 

5s     A-O   $35,000r Oct    1   1930 

5s  M-N        15,225r Nov   1   1930 

5s     J-D         4,400r Dec     11930 

Refunding    Bonds. 

5s '11   A-O  $49,650r Apr  1    1931 

BONDED  DEBT  Sept  21  '14 $      104,275 

Note    debt    (additional) 25,000 

Cash  on  hand 9.297 

Assessed   valuation   '14 13,306,240 


School  tax  (per  $1,000)  '14 7.30 

INTEREST  at   Nat.   Park   Bank,  N.    Y. 


TILLAMOOK    SCHOOL    DISTRICT. 

A  district  in  Tillamook  County. 

Building    ( Redeemable  beginning  in   1922). 

6s '12   A-O   $35.000 Apr  1  1932 

BONDED  DEBT  Sept  22  '14 $      35,000 

Sinking   fund 2,000 

Assess,  val.  '14   (7u<;    act.)  est 3,000,000 

School  tax   (per  $1,000)   '14 5.00 

Population    In    1914    (estimated) 7,500 

INTEREST  at  Nat.    Park   Bank,  N.   Y. 

WASCO  CO.  SCHOOL  DISTRICT  NO.  12. 

P.  O.  The  Dalles. 

Building    (Red.    beginning   Mar.    1,    1924). 

5s '14  MS  $100,000 Mar  4  1934 

BONDED  DEBT  Oct  14  '14 $    120,000 

Cash  on  hand   (general   fund) 15,632 

Building    fund 65,149 

Assessed     valuation 5,328,049 

INTEREST    at    County    Treasurer's    office 
or  at  State  fiscal  agency  in  N.  Y,  City. 


WASHINGTON    CO.    S.   D.    NO.    7. 

Building    Bonds     (Red.    beginning    1922). 

5s'12  J-J   $35.000 July    1    1932 

BONDED    DEBT    Nov    '13 $      45.000 

Assessed    valuation    '12 1,556,545 

Real    value    (estimated) 2,500,000 

Population  in  1912   (estimated) 3,500 

INTEREST  at  Equitable  Trust  Co.,  N.  ¥., 
or  at  County  Treasurer's  office,   Hiltsboro. 


STATE  OF  WASHINGTON. 

ITS 

DEBT,  RESOURCES,  ETC. 

Organized  as  a  Territory  (Act  March  2  1853).. March  2  1853 

Admitted  as  a  State  (Act  Feb.  22  1889) Nov.  13  1889 

Total  area  of  State  (square  miles) 69,180 

State   Capital Olympia 

Governor  (term  ends  Wed.  aft.  2d  Mon.Jan.'17)  Ernest  Lister 
Secretary  (term  ends  Wed.  aft.  2d  Mon.  Jan.  '17)  I  M  Howell 
Treasurer  (term  ends  Wed  aft.  2d  Mon.  Jan.  '17).. Ed.  Meath 
Auditor  (term  ends  Wed.  aft.  2d  Mon.  Jan.  T7)  C.  W.  Clausen 

I.ECrsr.ATt'RE  meets  biennially  in  odd  years  on  the  second  Mon- 
day  in  January.      Sessions  are  limited  to  sixty  days. 

TOTAL  DEBT — The  State  has  no  bonded  debt  against  the  general 
mod.  There  are  outstanding,  however,  $206,024  Normal  School  Fund 
bonds  and  $87,000  Public  Highway  Fund  bonds  shown  in  detail  below. 


Normal  School  Fund  Bonds. 
3s '09  J-D  $206,024. June   10,  1924 
(Subject    to    call    after    June     10 
1914. 


•Public    Highway  Fund    Bonds. 

4s '11  F-A  $87,000 Feb   1    1923 

(Subject    to    call    on    any    interest 
date,  10%  ($12,500)  annually.) 

•If  not   paid   by  highway  fund   in    12  years   from    their  date,   these 
bonds  will  be  paid  out  of  general  fund. 

INTEREST  is  payable  at  the  office  of  State  Treasurer  in  Olvmpia. 

ASSESSED     VALUATION.— The    following    statement     shows     the 
total    assessed   valuation    of    the    State    for    the    years    indicated.      Real 
estate  is  valued  only  every  two  years.     The  State  tax  rate  (per  $1,000) 
for  1913  was  $8".81. 
Years,  Assessment.    Years.  Assessment.  Years.  Assessment. 

1914 $1,031,901,773    1907 $573,070,528  1900 $237,576,523 

1913 1,014,475,027   1906 530,209,882  1890 217,595,569 


1912 1,005,086,251  1905 328,542,525  1880 23,708,587 

1911 955,125,934  1904 298,460,979  1870 10,642,863 

1910 906.247,944  1903 276,988,569  1860 4,394,735 

1908 748,593,942 

EXEMPTION  FROM  TAXATION.— Act  of  Legislature,  approved 
Feb.  28  1907,  exempted  mortgages,  credits,  notes,  municipal  securities, 
&c,  from  all  taxation  as  personal  property.  Act  upheld  by  State 
Supreme  Court  in  1908. 

DEBT  LIMITATION. — The  State  may,  to  meet  casual  deficits  or 
failures  in  revenues,  or  for  expenses  not  provided  for,  contract  debts ; 
but  such  debts  in  the  aggregate  shall  not  at  any  time  exceed  $400,000. 
The  State  may  also  incur  debts  to  repel  invasion,  suppress  insurrection 
or  to  defend  the  State  in  time  of  war.  Otherwise  the  State  shall  not 
contract  any  debt  except  the  same  shall  be  authorized  by  law,  and 
provision  must  be  made  for  the  payment  of  the  annual  interest  on  the 
same  and  also  for  the  payment  of  the  principal  within  20  years.  All 
such  propositions  must  first  receive  the  approval  of  the  voters. 

As  regards  counties,  cities,  towns,  school  districts  or  other  municipal 
corporations,  no  debt  is  to  be  incurred  by  them  in  an  amount  exceeding 
1  Vi  %  of  the  taxable  property  without  the  assent  of  3-5  of  the  voters 
therein,  nor  in  cases  requiring  such  assent  shall  the  total  indebtedness 
at  any  time  exceed  5%  of  the  taxable  property.  It  is  further  provided 
that  any  city  or  town,"  with  the  required  assent  of  the  voters,  may  be 
allowed  to  become  indebted  to  a  larger  amount  but  not  exceeding  5% 
additional  for  supplying  such  city  or  town  with  water,  light  and  sewers, 
when  the  works  for  the  same  shall  be  owned  and  controlled  by  the 
municipality.  The  provisions  in  full  will  be  found  in  Section  6  of 
Article  8   of  the  Constitution. 

POPULATION   OF   STATE— 

1910   1,141,990  1  1890 357,232    1870 23,955 

1900   518,103|1880 75,116  I  I860. 11,594 

CITIES,  COUNTIES  AND  TOWNS  IN  THE 

STATE  OF  WASHINGTON 

Equitable  Trust  Company  of  New  York  City  is  the  fiscal  agent  for  the 
State  of  Washington. 


ABERDEEN. 

This  city  is  in  Chehatis  County.  Incor- 
porated,_  May  12,  1890.  Commission  govern- 
ment rejected   Nov.  20,   1911. 

Funding  Bonds. 
S^s'll    J-D   $120.000c June  1  '22-'31 

Refunding    Bonds. 

5'  :•-         ID    $40,000 June  1  '22-'31 

GEN.  Bb.  DEBT  Oct  8  '14 $    160.COO 

Warrant     debt 145,498 

Cash     on    hand 11,557 

Assessed  valuation  '14   (2-5  act.)...   7,552,017 

Total  tax  rate   (per  $1,000)    '13 47.81  + 

T..|   ilation     in     1910 13,660 

INTEREST  at  Equitable  Trust  Co.,  N.  Y. 


BELLINGHAM. 

This  city  is  in  the  county  seat  of  Whatcom 
County  and  was  organized  Dec.  28,  1903,  by 
the  union  of  the  cities  of  Fairhaven  and  What- 
com. 

Bonds  Issued  by  Bcllingham  to  Refund  Bonds 
of    Former    Cities.     New    Whatcom — 

Series  A — Funding  Bonds. 
Ssj         A-O     $18.000c Oct  1  1926 

Series    B — Funding    Bonds. 
5s  g         A-O     $39,000c Oct  1  1926 

Series  C — Funding  Bonds. 
5sg         A-O     $237,000c Oct  1  1926 

Series    D — Funding    Bonds. 
5s  k         A-O     $183,000c Oct  1  1926 

Series    E — Funding    Bonds. 

5s  g         A-O     $225,OOOc Oct   1    1926 

BONDED  DEBT  Sept   1  '14 $    702.000 

Cash     in     treasury 97,722 

Assessed  Valuation  for  1913. 
District   A   (former  old   Whatcom)..    2,110.978 
District  B  (former  new  Whatcom)..   6,515,075 
District    C    (former    Kecslingville)  . .       431,097 

District    D    (former    Fairhaven) 1,490,339 

District   E    (former    Silver   Beach)..       101.256 
District    F    (water-front) 533,022 


Total  for  all   Bellingham $11,181,767 

City  Tax  Rate  (per  $1,000),  1913. 

District  A $12.75 

District   B 12.55 

District    C 10.50 

District   D 18.30 

District   E 9.00 

District    F 9.00 

Population    in    1910 24,298 

INTEREST  at  Equitable  Trust  Co.,  N.  Y. 


BELLINGHAM  SCH.  DIS  NO.  301. 

This  district  was  formed  by  the  consolida- 
tion of  Whatcom  County  School  Districts 
Nos.   1,  4,  37  and  81. 

Building  Bonds  (Red.  aft.  June  1,  1918.) 
454s  '08  June  $70,000 June    1    1928 


Refunding  Bonds. 
5s'13  ami    $35,000 

Old  District  No.   1    (Whatcom). 

4^8 '01     J-J    $13,000 Jan       2  1921 

4"4s'03    MS      65,000 Mch  10  1923 

Old  District  No.  4   (Fairhaven). 

3*Js'03  June  $25,000 June  15   1923 

BONDED  DEBT  Oct  16  '14 $      208,000 

Assessed  valuation  '14   (2-5  act.)...    12,222.495 
School  tax   (per  $1,000)   '14 9.75 

INTEREST  on  building  and  3H%  bonds 
payable  at  State  Treasurer's  office  in  Olym- 
pia ;  on  refunding  bonds  at  Bellingham  Na- 
tional Bank;  on  4;4s  and  bonds  of  1901  at 
Equitable  Trust  Co.,  New  York  City. 

BENTON  COUNTY  S.  D.   No.   16. 

Building  (Redeemable  beg.  in  1922). 

5s '12   Sept   $50,000 Sept  1  1932 

TOTAL  BONDED  DT.  July  1  '13.$      96,000 

Assessed  valuation 1,897,097 

Actual  valuation    4,000,000 

INTEREST  at  County  Treasurer's  office  in 

Prosser.  

CENTRALIA. 

This  city  is  in  Lewis  County.  Incorporated 
in    1890. 

Electric-Light  Bonds. 
6s     $11,000 Mar    1    1915 

Trunk    Sewer    Bonds. 
6s     $22,150 Oct  22  1917 

♦Water   Revenue  Bonds. 
6s  g  '13     semi-ann.     $300,000 1919-1938 

Funding  Bends. 

5s  '14  M-N  $1 18,891.01 May       1934 

GEN.   BD.   DEBT  Sept  20  '14 $    152,041 

Water    bonds    '300,000 

Assessment   debt    (add'l) 135,000 

Warrant  debt    88,000 

Assessed  val.,  '13 2,405,783 

Real   value    (estimated) 5,000,000 

Total   tax   rate   (per  $1,000)    '14....  54.00 

Population   in    1910 7,311 

INT.  on  electric-light,  water  and  funding 
bonds  at  fiscal  agency  (Equitable  Tr.  Co.)  in 
N.   Y.   City;  other  bonds  at  Centralia. 

•The  water  bonds  are  not  a  direct  obliga- 
tion of  the  city,  but  against  the  water  system 
and  its  income.  The  total  issue  of  $300,000 
is  being  delivered  in  installments  from  time 
to  time  to  take  up  the  monthly  estimates  of 
work  done  on  the  system. 

CHEHALIS. 

This  city  is  in  Lewis  Co.  Incorporated 
Sept.  22,  1890.  State  Supreme  Court  upholds 
city's  right  to  issue  bonds  for  gravity-water 
system. 

6s     J-J     $23,000 Jan  1  1915 

Ccn.  bonded  debt  Dec  31  '13 $      23,000 


Impt.  bonded  debt   (add'l) 146,926 

Impt.  warrant  debt  (add'l) 16,975 

Warrant   debt    (add'l) 74,575 

Assessed  valuation  1913 1,517.000 

Real  value  (est.)    3,000,000 

Population    in    1910 4,507 

CHEHALIS  COUNTY. 

Montesano   is   the  county    seat. 

Funding   Bonds. 

S'As  '13  J-D  $180,000 Dec  1  1924 

(Red.  $18,000  yearly  beg.   Dec.   1,  '14.) 

BOND   DEBT   Sept   '14 $      180,000 

Assessed   valuation   '13 34,305.328 

Population   in    1910 35,590 

INT.  at  fiscal  agency  N.  Y. 

CHEHALIS   CO.    S.   D.    No.   5. 
Building    Bonds. 

5s '02       J-J         $8,000 July   31   1922 

(Subject   to    call    after   July    31,    1903.) 

4s '06       Aug     $20,000 May     1    1926 

(Subject  to  call  after  May   1,    1907.) 

4s '09      Sept     $80,000 Sept      11929 

(Subject  to  call  after   Sept.    1,    1910.) 
Warrant  Funding   Bonds. 

4s '05       Aug     $11,000 Feb   25   1925 

(Subject  to  call  after  Feb.  25.   1906.) 

4s      '09  July     $70,000 July      1    1929 

5^s'14  M-S       86,000 Mar  1  '20-'34 

BONDED   DEBT  Oct  '14 $    275,000 

Assessed  valuation  '13 7,480.223 

School    tax   rate    (per   $1,000)    '13...  11.30 

I NTEREST   at    State   Treasurer's   office   in 

Olympia.  — ■ 

CHEHALIS    CO.   SCH.   DIS.    No.   28. 
Building  Bonds. 

4)|s'07  $40,000 Aug  1   1927 

Warrant   Funding   Bonds. 

5s'll   F-A    $60,000 Feb   15    1931 

(Subject  to  call  after  Feb.   15,  1912.) 

4j4s'13  s-a   $90,000 1933 

(Subject  to  call  beginning  1915.) 

BONDED  DEBT  Oct  '14 $    190,000 

Assessed  valuation  '13    (3-5  act.)...  4,485.586 

School  tax  rate  (per  $1,000)  '13 10.45 

INTEREST   at    State   Treasurer's   office   in 
Olympia, 


CHELAN    CO.    SCH.    DIST.    No.   46. 
Building  Bonds   (.T ox-Exempt). 

4s '06   June     $12,000c June  23  1926 

(Subject    to   call   June   23,    1907.) 

4^s'07    T-J     $10,000c July     1   1927 

(Subject  to  call  July  1,   1922.) 

4s'09     Feb     $80.000c Feb    15  1929 

(Subject  to  call   Feb.    15,   1910.) 

5j4s'10Dec    $15,000c Dec      1   1930 

(Subject  to   call   Dec    1,    1911.) 

5s '11       July     $50.000 July     1  1911 

(Subject    to    call.) 


{.Compiled  by  the  Commercial  and  Financial  Chronicle.) 


124 


WASHINGTON  CITIES  AND  TOWNS 


CHELATIS  CO.   SCH.   DIST.    No.  28— Con- 
tinued. 

BONDED    DEBT   Oct    1    '13 $    167,000 

Floating   debt    33,452 

Sinking  fund    8,190 

Assessed  valuation  '13  (2-5  act.)....  5,125,335 
School  tax  rate  (per  $1,000)  '13..,.  14.00 

Population    in    1913 5,000 

INTEREST  at  County  Treasurer's  office. 


CHELAN   COUNTY   S.   D.    No.  49. 
Building  Bonds  (Tax-Exempt). 

S'As'07    Apr     $18,000c Apr  15   1922 

(Subject  to  call   beg.   April   15,    1908.) 

5s '11  Nov     $35,OOOc Nov  1   1926 

(Subject  to  call  beg.  Nov.  1,  1912.) 

BONDED  DEBT  Oct  1  '13 $      53,000 

Floating   debt    6,268 

Sinking  fund   5,560 

Assessed  valuation  '13    (2-5  act.)...    1,306,591 

School  tax  rate  (per  $1,000)   '13 15.00 

Population   in    1913 4,000 

INTEREST  at  County  Treasurer's  office. 


CHELAN    CO.    SCH.    DIST.    No.    56. 

Building  Bonds  (Tax-Exempt). 

5s '07    Aug    $14,500c Aug  1  1927 

(Subject  to  call  beg.  Aug.  1,  1908.) 

5s '11    July    $35,000c July  1  1931 

(Subject  to  call  beg.  July  1,  1912.) 

BONDED    DEBT    Oct    1    '13 $      49,500 

Floating  debt   999 

Sinking    fund     1,711 

Assessed  valuation  '13    (2-5  act.)...   1,645,068 
School  tax  rate   (per  $1,000)   '13      ..  11.25 

Population   in    1913 2,000 

INTEREST  at  County  Treasurer's  office. 

CLALLAM    COUNTY. 

County  seat  is  Port  Angeles.     All  bonds  are 
tax-exempt. 

Refunding  Bonds. 
4'As    M-N       $90,000c May  15  1921 

Road  and  Bridge   Bonds. 

5s '13    F-A     $300, 000c Aug  1   1933 

(Subject  to  call  Aug.  1,  1914.) 

BONDED  DEBT  Sept  1  '14 $      390,000 

Warrant    debt    (additional) 44,648 

TOTAL  DEBT  Sept  1  '14 434,648 

Sinking    fund     4,684 

Assessed  valuation   '13    (A   act.)..   12,440,420 
State  and  Co.  tax   (per  $1,000)   '13  23.00 

Population   in    1910 6,755 

INTEREST   at   Equitable   Trust   Co.,    New 
York. 


CLALLAM    COUNTY    SCH.    DISTS. 
School  District  No.  3   Bonds. 

514s  J-D     $4,000c Dec    1   1929 

(Subject  to  call  after   1919.) 

5s  Nov     $6,000c Nov  1   1931 

(Subject  to  call  after  1912.) 
School  District   No.  301   Bonds. 

S'/is         Aug     $4,000c Aug  1   1932 

(Subject  to  call  beg.    1913.) 
School   District   No.  5    Bonds. 

6s  J-J     $2,000 Jan    1  1924 

(Subject  to  call  Jan.   1,   1914.) 
School    District    No.    7    Bonds. 

6s'98      F-A     $21,000c Feb    1  1918 

5s '12       J-J       51,200 July  1   1922 

(Subject  to  call  after  July   1,   1917.) 
School  District  No.  27  Bonds. 

4!^s         s-an       $2,000 Jan  1   1922 

(Subject  to  call  June   12,    1912.) 
TOTAL  BOND.  DT.  Sept  23  '14...$      90,200 

1  Dist.  No.  5....  88,898 
Dist.  No.  7 1,501,478 
Dist.  No.  28 617,249 
Dist.  No.    5 4.00 

Dist.  No.    7....  10.00 

Dist.  No.  27 2.00 

Population    in    1912    (est.) 3,500 

INTEREST  on  6%  bonds  payable  at  Equit- 
able Trust  Co.,  New  York. 

CLARKE  COUNTY. 

County  seat  is  Vancouver.     Bonds  are  tax- 
exempt.      Population    1910,   26,115. 

Funding   Bonds. 

6sg    J-D     $61,000c Dec    1   1916 

4s         J-J       40,000c July  2  1921 

BONDED    DEBT  Sept  '14 $      101,000 

Assessed  valuation    '14    (45%   act.)   15,167,342 
State  and  Co.  tax  (per  $1,000)   '13  29.00 

INTEREST   at   Equitable  Trust    Co.,   New 
York. 


CLARKE   CO.    SCH.    DIST.    No.   6. 

4Vis         $25,000 July    1   1929 

S'As         ....     11,475 Apr    1  1931 

5J4s         5,000 Sept  1  1933 

5s  20,000 Sept  1  1931 

4'As'12 100,000 Feb    3  1932 

BONDED  DEBT  April  20  '14 $    165,475 

Assessed  valuation  '13 5,139,224 

INTEREST  payable  at  County  Treas.  office. 

CLARKE    CO.    SCH.    DIST.    No.    58. 

Building   Bonds. 

5s '13    Nov    $29,000 1933 

TOTAL  DEBT  Sept  19  *14 $  29,000 

Assessed    valuation    '13 687,203 

INTEREST  payable  at  County  Treas.  office. 

COWLITZ    COUNTY. 

Kalama  is  the  county  seat. 

Funding   Bonds    (Series   "C"). 

5s '11    FA     $22,000c Aug  1   1931 

(Subject  to  call  Feb   1,   1927.) 

'11  M-N  $S0,000c May  15   1931 

(Subject  to  call  after  May   15,  1926.) 

'11  J-J    $14,000c July  1  1931 

(Subject  to  call  after  Jan.   1,   1927.) 

TOTAL   DEBT   April    1    *14 $      97,021 

Assessed  valuation   '13 9,267,086 

Population     in     1910 12,561 

INTEREST  payable  at  Equitable  Trust  Co., 
New  York;  Harris  Trust  &  Sav.  Bank,  Chi- 
cago; Harris,  Forbes  &  Co.,  New  York  City, 
and  at  N.  W.  Harris  &  Co.,  Inc.,  Boston. 


ELLENSBURG. 

This  city  is  in  Kittitas  County. 

Electric-Light    Bonds. 
5s     J-D     $44,000c June  1   1931 

Sewer  Bonds. 
5s     J-D     $26,000c June  1   1931 

*Electric-Light   and    Power    Bonds. 
6s     M-S  $110,000c Mar    1    1927 

*Water  Bonds. 
6s     A-O     $99,748.35c Oct    1   1934 

Refunding   Bonds. 
5s     J-D     $29,000c Dec    1  1931 

Funding  Bonds. 

5s $20,000 Feb  1   1934 

6s   fl8,000 May  10  1920 

GEN.    BONDED   DT.    Sept    19  '14.$    119,000 

Light  and   water   debt    (add'l) *209,748 

f  Current  expenses         15,467 

Floating  debt -{Electric  light...        90,811 

(.Water 15,007 

Assessed  valuation   '14    ('A   act.)...  2,284,585 

Total  tax    (per  $1,000)    '13 49.94 

Population    in    1910 4,209 

*The  electric  light  and  _  power  and  water 
bonds  are  not  a  direct  obligation  of  the  city, 
but  against  the.  electric  light  and  water  sys- 
tems and  their  incomes. 

tThis  $18,000  issue  was  never  approved  by 
the  voters,  so  the  city  has  always  considered 
it  as  floating  indebtedness,  but  the  same  is 
not  included  in  such  indebtedness  given  above. 


ELLENSBURG    SCH.    DIST.    No.   3. 

Refunding  Bonds. 
5s    A-O     $40,000c Oct  1   1931 

High-School  Bonds. 

4'As    Dec  $90,000c Dec    11932 

BONDED    DEBT   March    '14 $    130,000 

Assessed    valuation    '14 3,236,869 

(Assessment  about  40   to   50%   actual  value.) 
Population   in    1913    (est.) 5,500 

INTEREST  at  County   Treas.   office. 


EVERETT. 

This  city  is  in  Snohomish  County.     Incor- 
porated May  4,  1893. 

Sewer   Bonds. 
5sg   F-A     $60,000c Feb  1   1920 

Funding  Bonds. 
6s       J-D     $61,900c Dec  1   1915 

Warrant  Funding  Bonds. 

5sg'll  J-J  $613,000c July  15   1931 

GEN.  BOND.  DT.  Jan  1  '14 $      764,900 

Assessment  debt    (add'l) 731,842 

Floating  debt    55,198 

TOTAL  DEBT  Jan   1  '14 1,551,940 

Sinking  fund   80,339 

Assessed  valuation  '13   (2-5   act.)..   13,457,336 
Total  tax   rate    (per  $1,000)    '14...  43.50 

Population  in  1910 24,814 

INTEREST   at   Equitable   Trust   Co.,    New 

York.  

EVERETT   SCH.    DIST.    No.   24. 

3J4s'07 $150,000c Mch     1  1927 

334s '07 50,000c May     1   1927 

3J4s'07 50,000c July     1   1927 

4^s'08 50,000c Oct      1  1928 

4^s'09 25,000c Jan       1  1929 

4i/Js'09 25,000c Apr      1   1929 

4"4s'09   50,000c June    1   1929 

BONDED   DEBT  Jan   1   '13 $      400,000 

Floating  debt  Oct  21   '12 111,550 

Sinking   fund   and   cash   Oct   21    '12  19,180 

Assessed  valuation  '12   (3-5  act.)..   13,586,246 
School    tax    (per   $1,000)    Ml 12.80 

INTEREST  at   County  Treas.   office. 

OPTIONAL. — All  the  above  bonds  are  sub- 
ject to  call  after  1  year  from  issue. 

FRANKLIN  COUNTY. 

Pasco  is  the  county  seat. 

Fund.  Bonds  (Red.  beg.  Dec.  1,  1921.) 
5s '11 $40,000 Dec   1   1931 

Court-House  and  Jail  Bonds. 

5s '12  A-O     $85,000 Apr   1   1932 

BONDED  DEBT  May   1    '14 $    135,000 

Assessed  valuation  '13 8,670,008 

Population  in    1910 5,153 

FRANKLIN    CO.    SCH.    DIS.    No.    1. 

5s'll    $40,000 1931 

(Subject  to  call  after  1921.) 
BONDED  DEBT  April  '14 $80,000 

HOQU1AM. 

This  place  is  in  Chehalis  County.     Commis- 
sion government  adopted  June  5,   1911. 

Refunding  Bonds. 

5J4s  J-D    $115,000 1922-1931 

GEN.  BONDED  DT.  March  '14...$    115,000 

Local   impt.    bonds    (add'l) 239,565 

Warrants  outstanding    157,115 

Cash  on  hand 63,305 

Assessed  valuation   '13 3,973,699 

Tax  rate  (per  $1,000)  '13 17.10 

Population    1910    8,171 

INTEREST    at    Harris    Tr.    &    Sav.    Bk., 

Chicago.  , , 

JEFFERSON  COUNTY. 

County  seat  is  Port  Townsend. 

Refunding   (Part  every  5  years). 

5J4sg'll  J-J  $133,000c Jan  1  '16-'31 

BONDED  DEBT  April  '14 $    133,000 

Floating   debt    91,000 

Sinking  fund   16,000 

Assessed  valuation  '13  (2-5  act.) 6,839,800 

State  and  county  tax  (per  $1,000)  '13         28.24 
Population   in    1910 8,337 

INTEREST   at   Equitable   Trust   Co.,    New 

York. ■ 

JEFFERSON    CO.    S.    D.    No.    1. 
Treasurer ;  on  5s  at  State  Treasurer's  office. 

Fund.  Bonds  (Red.  beg.  in  1905). 
6s '95    M-N    $24,000 Nov  1  1915 

Refunding   Bonds. 

5s  '11    A-O    $82,000 Apr  1   1931 

BONDED    DEBT   April    '14 $    103,000 

Assessed  valuation  '13    (2-5  act.)...    1,508,342 
School  tax  rate   (per  $1,000)   '13...  10.00 

INTEREST     on     6s     at     office     of    County 
Treasurer ;    on    5s    at    State    Treas.    office. 


KING    COUNTY. 

County  seat  is  Seattle.  The  State  Supreme 
Court  on  Dec.  6,  1913,  declared  valid  the 
court-house  bonds  given  below.  The  road 
bonds  given  below  are  part  of  an  issue  of 
$3,000,000,  the  legality  of  which  has  been 
upheld  by  State  Supreme  Court. 
5s'08    M-S    $1, 500,000c Mar  1  1928 

Court-House   Bonds. 
5s '13    May    $950,000c Mav  1   1933 

(Opt.  beg.  May  1,   1923,  $95,000  yearly.) 

Refunding  Bonds. 

4^s'll  F-A  $170,000c Feb  1  '15-'31 

4^s'll  F-A       98,000c Feb  1  '15-'31 

Harbor  Bonds. 

4^sg'll   Nov  $l,750,OOOc Nov  1  '31 

(Subject  to  call  $175,000  yearly  Nov.  1,  1921, 
to  1930.) 

Road  Bonds. 

5s'13     M-S     $300,000c Sept  1   1933 

5s'14     M-N       500,000c' May  1   1934 

BONDED  DEBT  Sept  23  '14 $     5,268,000 

Assessed  valuation  '13   ('A  act.)..   264,287,057 
State  and  Co.  tax  (per  $1,000)  '13  18.01 

Population   in    1910 284,638 

Population  in  1914  (est.) 350,000 

INTEREST  on  5s  payable  at  Equitable 
Trust  Co.,  New  York ;  on  refunding  bonds  at 
Harris  Trust  &  Savings  Bank,  Chicago ;  on 
bonds  of  1911  and  1913  at  Equitable  Trust 
Co.  or  at  County  Treasurer's  office. 


KING   COUNTY  COMMERCIAL  WATER- 
WAY DIST.  No.   1. 

P.  O.  Seattle.     Bonds  are  tax-exempt. 

7s '13    J-D    $500,000 Dec  1   1923 

(Subject  to   call  after   Dec.    1,   1918.) 

BONDED  DEBT  Sept  23  '14 $      500,000 

Assessed    valuation    '13    (real) 10,056,599 

Real    value    (estimated) 25,000,000 

Population    of    district    (est.) 20,000 

INTEREST  at  County  Treasurer's  office. 


KING  COUNTY   SCH.   DIST.   No.   7. 

Building   Bonds. 

5s '07     June  $  1,500c Tune  15   1917 

5s '09     Sept       2,000c Sept     1    1919 

5s '11     Feb     65,OO0c Feb       1   1931 

(Subject  to   call  after  Feb.    1,    1912.) 

5^s'14ann     $9,000c April    11934 

BONDED  DEBT  Sept  23  '14 $      77,500 

Assessed  valuation   '13    (A   act.)...   2,026,949 
School   tax  rate   (per  $1,000)   '13...  10.00 

Population    in    1914    (est.) 3,750 

INTEREST  on  5s  due  1917  payable  in  New 
York  at  Equitable  Trust  Co. ;  other  bonds  at 
State  Treasurer's  office. 


KING  COUNTY  S.  D.  No.  51. 

Building  Bonds   (Red.  beg.  in  1918). 

5s '13  Sept  $45,000c Sept  15  1933 

BONDED  DEBT  Sept  23  '14 $      45,000 

Assessed   valuation   '13 1,595,103 

(Assessment   about    A    actual  value.) 

School  tax  (per  $1,000)  '13 $7.00 

Population    in    1913    (est.) 2,500 

INTEREST    at    office    of    State    Treasurer, 
Olympia. 


KING  CO.  SCH.   DIST.  No.   162. 

Building    (Subject   to   call). 

4^s'10     Aug    $55,OOOc Aug      1   1925 

4s      '05     May       12,000c May  15   1920 

BONDED   DEBT  Sept  23   '14 $      67,000 

Floating   debt    8,193 

Sinking  fund    1,286 

Assessed   valuation    '13    (A    act.)...   2,185,464 
School  tax  rate    (per   $1,000)    '13...  12.00 

Population  in  1914  (est.) 3,200 

INTEREST  payable  at  State  Treas.  office. 


KING   CO.   SCH.   DIST.   No.   170. 

Building    (Subject   to   call). 

4Vis'10     July    $46,000c July  11920 

BONDED  DEBT  Sept  23  '14 $      46,000 

Assessed   valuation    '13    (A    act.)...    1,564,469 
School   tax   rate    (per  $1,000)    '13...  11.00 

Population   in    1914    (est.) 2,600 

INTEREST  payable  at  State  Treas.  office. 

KITTITAS   COUNTY. 

County  seat  is  Ellensburg.     Chelan  County's 
portion  of  the  bonded  debt  is  $16,513. 

County    Bonds,    1895. 
6s  M-N     $117,000c Nov  1   1915 

School   No.  22   (Subject  to  call). 
5s'13        aim       $ll,000c Sept  1  1933 

School   No.   25    (Subject  to   call). 
4i4s'llann        $8,000c Oct    2  1919 

School  No.  200   (Subject  to  call). 

5VSs'12    ann       $10,000c Dec    11932 

CO.   BONDED  DT.  Sept  21   '14..$      117,000 

Cash  in  county  funds 17,179 

Chelan     County's    portion 16,513 

Assessed    valuation    '13    (2-5    act).   16,669,448 
State  and  Co.  tax  (per  $1,000)  '13.  21.04 

Population    1910    18,561 

INTEREST   at    Equitable   Trust   Co.,    New 
York. 

LEWIS   COUNTY. 

County  seat  is  Chehalis. 

Refund.   (Red.  aft.   10  years  fr.  issue). 

4Ks'05  J-J     $10,000c Jan  1   1925 

4J4s'06  J-J       10,000c Jan  1  1925 

Funding  Bonds. 

5s '12  M-S  $300,000 Mar  1  '23-'32 

BONDED  DEBT  Jan   1   '14 $      330,000 

Floating   debt    75,524 

Sinking  fund    38,815 

Assessed  valuation  '13    (60%  act.).   20,177,489 
County  tax  rate   (per  $1,000)   '13..  14.59 

Population   in    1910 32,127 

INTEREST  at  office  of  County  Treasurer. 

LEWIS   CO.   SCH.  DIST.   No.   9. 

5s '96  M-S   $  2,600 Mar  15   1916 

5s '06     J-J     15,000 ;••■.••:■• 

(Subject    to    call    $3,000    each    year   beginning 
1918.) 


(.Compiled  by  the  Commercial  and  Financial  Chronicle.) 


WASHINGTON  CITIES  AND  TOWNS 


125 


LEWIS   CO.   SCH.   DIST.— Concluded. 

Refunding  {Red.  beg.  in  1912). 
454s '11  June   $50,000c June  5  1931 

Building   {Red.  beg.  in  1912). 

454s '11  July     $43,OOOc July  1   1931 

BONDED  DEBT  Jan  1  '14 $    112,600 

Floating   debt    82,470 

Sinking  fund  Jan   1    '14 2,939 

Assessed  valuation  '13   (60%  act.)..  3,011,065 
School  tax  rate   (per  $1,000)    '13...  15.00 

INTEREST  at   State  Treasurer's  office. 


LEWIS  COUNTY  S.  D.  No.  211. 
Building   (Red.  begin.  July  1,  1914). 

554s '13  July  i25,000 July  1   1918 

BONDED  DEBT  Jan   1   '14 $  25,000 

Floating  debt   5,995 

Sinking    fund    697 

Assessed  valuation  '13  (60%  act.)..  807,863 
School  tax  (per  $1,000)  '13 12.00 

LINCOLN    COUNTY. 

Davenport    is   the   county    seat.      All    bonds 
are  taxable. 

Refunding  Bonds. 
4\is'02  June   $54,000c June  2  1922 

Court-Mouse  (Red.  beg.  in  1916). 

454s '06  Apr  5   $41,000c Apr  5   1926 

BONDED  DEBT  March  20  *14..$  95,000 
Assessed  valuation  '13  (54  act.)..  24,177,168 
State  and  Co.  tax  (per  $1,000)  '13.  16.80 

Population    in    1910 17,539 

INTEREST  at  Equitable -Trust  Co.,  N.  Y. 

MIDDLE   KITTITAS   IRRIG.   DIST. 

A  district  in  Kittitas  County. 

6sg'10  J-J  $103.O00c 1940 

BONDED  DEBT  Sept  21   "14 $103,000 

Assessed  valuation  '13  (40%  act.)..  673,274 
Tax  rate   (per  $1,000)    '13 9.40 

INTEREST  at  County  Treasurer's  office. 


NORTH  YAKIMA. 
This    city    is    situated    in    Yakima    County. 
Incorporated  May  14,  1894.     Commission  gov- 
ernment went  into  effect  September,   1911. 
Sewer  Bonds. 

4s      '06  M-S     $48,000c Mar     1   1926 

454s '11    A-O       50,000c Oct      1   1931 

5sg  '11    J-D       60,000c Dec  15  1931 

(Subject  to  call  after  Dec.   15,  1912.) 
Refunding  Bonds. 

Dec  1   1928 

Dec  1  1930 

5s      '12     F-A      30,000c Feb  1    1932 

(Subject  to  call  after   Feb.   1,   1913.) 

TOTAL  DEBT  March  18  '14 $    298,000 

Assessed  valuation  '13   (3-5  act.)...   8,450,645 

City  tax  (per  $1,000)   '13 20.94 

Total  tax  rate   (per  $1,000)    '13 43.86 

Population    in    1910    (Census) 14,082 

INTEREST  on  sewer  454s  and  refunding 
5s  of  1910  at  fiscal  agency  (Equitable  Trust 
Co.),  New  York:  the  sewer  4s  at  Chicago; 
sewer  5s  and  refunding  454s  at  City  Treas- 
urer's office ;  others  at  State  Treasurer's  office. 


Ketunding  ttonos. 
454  s '08     ID     $80,000c. 
5s      '10    J_-D       30,000c. 
5s      '12     F-A      30,000c. 


NORTH   YAKIMA   S.   D.    No.   7. 

454s '00  May     $1 1,000c May   1    1920 

4s      '03  Aug-       22,000c Aug  8  1923 

(Subject  to  call  after  Aug.   1,   1904.) 

4s      '05  Feb     $25,OOOc Feb  11   1925 

(Subject  to  call  after  Sept.  11,  1906.) 

4s      '07  Apr    $150,000c April  1927 

(Subject  to  call  after   1908.) 

5s      '11     Feb    $75,000c Feb  1931 

(Subject  to  call  after   1912.) 

BONDED   DEBT  Sept    19   '14 $    303,000 

Sinking    fund     13,780 

Assessed  valuation  '13   (45%  act.)..  9,766,600 

School   tax    (per   $1,000)    '13 6.22 

INTEREST  at   New   York,  Chicago  and  in 
Olympia,   Wash. 


OLYMPIA. 

Olympia  is  situated  in  Thurston  County. 
Incorporated  as  a  town  1859:  as  a  city  1881. 
Bonds  below  all  owned  by  State  Permanent 
School  Fund. 

Refunding   Bonds  (Red.  beg.  in  1911). 

3  Ws  '06  J-J   $200.000c 1926 

BONDED  DEBT  Sept  24  '14 $    200,000 

Assessment    debt    (est.) 357,463 

Floating    debt     (est. ) 65,886 

Assessed  valuation  '14   (3-5  act.)...   3,271,435 

Total  tax   (per  $1,000)   M3 48.00 

Population    in    1910 6,996 

INTEREST  at  office  of  State  Treasurer. 


OLYMPIA    SCHOOL    DIST.    No.    1. 
Refunding   Bonds. 

5s '10  J-J    $25,000c July  1   1930 

(Subject    to   call    beg.    July    1    1912.) 

554s '13  Oct     $10,000c Oct  15   1933 

(Subject  to  call  beg.  Oct.   15,  1914.) 
Funding  Bonds  (Red.  beg.  in  1912). 

454s '11  s-an  $78,000 Jan  2  1932 

BONDED  DEBT  Sept  18  '14 $      113,000 

Floating  debt    6.237 

Assessed  valuation  '13    (3-5  act.)...  3,432,107 
School   tax  rate   (per  $1,000)    '13...  13.00 

Population    in    1914    (est.  1 9.000 

INTEREST    at    State    Treasurer's    office. 


No.    36. 


PACIFIC    COUNTY. 

South  Bend  is  the  county  seat. 

Building   Bonds   (Red.  any  time). 
5s  '13   $10,000 1933 

Court-House  i  Red.  beg.  in  1911). 
5s '10     J-J  $150,000 July  1   1920 

Refunding  (Red.  beg.  in  1911). 
5s '01  M-N     $33,000 Not  2  1921 

Road  and  Bridge  (Red.  beg.  in  1912). 

5s  Ml      JJ  $100,000 Jan    2  1926 

BONDED    DEBT  April   26   '14...$      283,000 

Warrants  outstanding   200,000 

Assessed   valuation   '13 17.979,788 

State  and  Co.  tax   (per  $1,000)   '12  12.65 

Population     in     1910 12,532 


PACIFIC    COUNTY    S.    D. 
High-School-Building    Bonds. 

454g  13  ann  $75,000   (Red.   beg.  '23) 1933 

"ONI" 


(Red. 

BONDED   DEBT  Sept   '13 $    105,000 

Assessed   valuation    2,219,919 


PEND  OREILLE  COUNTY. 

Newport  is  the  county  seat. 

Warrant-Funding   Bonds. 

454g'12M-N    $72,OO0c May    1    1932 

(Subject  to  call  after  May  1,  1922.) 

BONDED   DEBT   May   '14 $      72,000 

Warrants    outstanding    56,152 

Sinking  fund   10,000 

Assessed    valuation    '14     (54act.)...  6,550,382 
Population     in     1910 6,660 


PIERCE    COUNTY. 

The  county  scat  is  Tacoma. 

Refunding  Bonds. 

5s      '05  A-O  $268,000c Oct     2  1925 

(Subject  to  call  beginning  Oct.  2,  1915.) 

3«s'06  J-D     $8,000c June  1    1926 

(Subject  to  call  beginning  June  1,  1907.) 

4s      '06  M-S  $150,000c Sept  1   1926 

BONDED  DEBT  Jan    1   '13 $      426,000 

Assessed   valuation,   real 81,082,429 

Assessed    valuation,    personal 17,514,757 

Assessed   valuation,   railroads 10,146,457 

Total  valuation  '12   (3-5  act.) 108,743,643 

State  and  Co.  tax  (per  $1,000)  '12  13,000 

Population    in     1910 120,812 

Interest  on  3fjs  is  payable  at  State  Treas- 
urer's; on  other  bonds  in  N.  Y.  City. 

PORT  ANGELES. 
This    city    is    in    Clallam    County.       Incor- 

y orated    as   a    city    of    the    third    class   about 
une,    1891. 
Refunding  Bonds  (Red.  Oct.   1,   1923). 

554s'12  ....     $50,000 Feb  1   1932 

6s      '13  A-O      36,000 Oct  1    1933 

GEN.   BD.  DEBT  Oct  1   '14 $      86,000 

Assessment   bonds    (additional) 223,121 

Warrants     outstanding 59,298 

Assessed  valuation   '14 2,020,060 

Population  in   1910 2,286 


PORT  OF   SEATTLE. 

P.    O.    Seattle. 

East  Waterway  Improvement  District  No.  1. 

454s  g '13  J-J       $494,000 Jan     1'15-'S5 

454sg'13M-N     348,000 May  1  M5-'55 

5s  g       '13  M-S     436,000 Sept  1  '15-'55 

East  Waterway  Improvement  No.  2  Bonds. 

5sg'13  M-S    $554,000 Sept  1  '15'55 

5s  g '14  J  J  40,000 Jan    1  "15-'56 

Salmon  Bay  Improvement  Bonds. 

454s  g '13  J-J     $347,000 1915-1955 

5sg  s-a       197,000 Part  yearly 

West   Seattle  Ferry  Bonds. 
5s  g  '14  J-J     $200,006 Jan     1  '15'55 

Central  Water  Front  Improvement  Bonds. 
454sg  M-N     $745,000 Part  yearly 

Smith's   Cove   Improvement   Bonds. 
4J4 sg  s-a     $996,000 Part  yearly 

Lake    Washington    Improvement    Bonds. 

454g'13  J-J    $149,000 July  1  '15*55 

BONDED   DEBT  Sept   1   '14....$     4,712,000 
Assessed  valuation  '13   (45%  act.)  263,611,027 

Population    in    1910 284,638 

Population  in    1913    (estimated) 338.500 

INTEREST  at  Equitable  Tr.  Co.,  N.  Y. 

PORT    TOWNSEND. 

This  city  is  in  Jefferson  County.  Incor- 
porated Dec.  8,  1881. 

Funding    Bonds. 
6s         M-N       $29,100c Dec  1  1915 

"Water   Bonds    (Red.   any  time). 
6s         M-N     $185,000r Nov  1925 

Refunding    Bonds. 

554s '11  \f  $75,OOOc July  1931 

(Subject    to   call    after    1921.) 

GEN.  DEBT  Jan  1  '14 $    104,100 

Assessment    debt    (additional) 28,983 

Sinking    fund    and    cash    11,643 

Water   bonds    (not    included   above)       180,000 

Water    sinking    fund 8,929 

Assessed    valuation     '13 1,387,239 

City  tax  (per  $1,000)   '13 17.00 

Population    1910    4,181 

'These  bonds  are  not  a  city  obligation. 
SEATTLE. 

Situated  in  King  County.  Incorporated  as 
a  town  Jan.  14,  1865  and  as  a  city  Dec.  2, 
1869.  Proposed  new  city  charter  rejected 
June  30,  1914.  An  issue  of  $800,000  munici- 
pal-electric-railway system  bonds  was  voted 
Mar.  7,  1911,  and  validity  subsequently  up- 
held. Up  to  Aug.  1,  1913,  $300,000  had  been 
issued. 

Building   Bonds. 

4s      '02  A-O  $I00,000c Oct  15   1922 

4s      '05  JJ       175,000c July  1   1925 

454s'10  J-J  50,000c July  1   1930 

454s'10J-D      300,000c Dec    11930 

Funding   Bonds. 
5s '11  J-D    $46,000c June  1   1931 

General    Improvement    Bonds. 
454g'll     J-D     $136,000c Dec  1   1931 

Sewer    Bonds. 
454s '07  M-S    $l,650,OO0c Mar  1   1927 

Refunding   Bonds. 

5sg'U  J-J     $391,000c July  1  '15'31 

5sg'12A-0    699,000c Apr    1  '14-'32 

5sg'12  J-J       376,000c July  1   '14'32 

5s     '13  J-J       780,000  July  1  '15-'18 

Light  Plant  Extension  Bonds. 

4s     '05     J-J  $250,OOOc July  1   1925 

4s      '09  A-O  500,000c Apr    11929 

454s  "10  M-S  200.000c Mch  1    1930 

4 54g  '12  J-J  1,000,000c Jan    1   1932 

Park   Bonds. 

4s      '07  M-S     $500,000c Mch  1    1927 

4s      '09  A-O       500,000c Apr    11929 

454s'10M-S       500,000c Mch  1   1930 

454s '10  J-D       500.000c Dec    1   1930 

454s '11   J-D     1,000,000c June  1    1931 

454g'12J-J         500.000c .Jan    1    1932 

454s'12J-J         500,000c July    11932 


Municipal  Light  Plant  Bonds. 

3Us  '04  J-J     $400,000c July  27   1923 

3Ms'04A-O      190,000c Apr     I   1924 

3Ks'07J-J        200,000c July     11927 

3Ms'08  J-J        400,000c J&J   1  1928 

454s  '11  J-D       100,000c June    11931 

454s '14 75,000  Jan     11934 

Refunding  Water  and  Sewer  Bonds. 
5s  g  '10  J-I     $814,000c July   1  '14-'30 

Water-Works-Extension    Bonds. 

454s '10  J-J    $500,000c July  1    1930 

454s'llJ-J      580,000c July  1   1931 

454g'12  J-J     500,000c Jan    11932 

Water  Tunnel  Bonds. 
454s  g  '14  J-J    $300,000 July  1  1934 

Refuse   Disposal    Plant   Bonds. 
454s '10  J-J    $32O,0O0c July  1  "15-'30 

City   Electric    Ry.    Bonds. 

454g'l3  M-N   $300,000c May  1  1933 

BALLARD— Annexed  Jan.  29,  1907: 

Refunding   Bonds. 
6s  '95  j-D  $24,500c Dec  1   1915 

Funding    Bonds. 

454s '05  F-A    $75,OOOc Aug  1   1925 

5s      '10  M-S     65,000c Mar  1   1930 

Water-Works  Bonds. 

6s      '95  J-J     #$42,000c Jan  1  1915 

454s '02  F-A     *10,000c Aug  1  1917 

454s '04  A-O    *25,000c Oct  1   1924 

COLUMBIA— Annexed  May  3,  1907: 

General   Municipal   Bonds. 
6s      '04  F-A   $3,900c Aug  27  1924 

In  addition  to  the  bonds  given  above,  there 
are  also  outstanding  $1,767,000  5%  (J. -J.) 
coup.  Cedar  River  water  bonds  due  Jan.  1, 
1915'26.  These  bonds  are  a  lien  on  a  cer- 
tain portion  of  the  revenues  of  the_  Water 
Dept.,  and  are  not  a  general  municipal  in- 
debtedness. There  also  remain  outstanding 
$510,000  from  an  issue  of  $1,250,000  Cedar 
River  water-supply  warrants  payable  at  the 
rate  of  $100,000,  principal  and  interest  yearly 
from  water  revenues  only. 

•Issued  in  payment  for  water  systems  by 
their  respective  cities  prior  to  annexation. 
They  were  then  made  part  of  the  water  plant 
of  this  city,  and  although  they  are  a  general 
indebtedness,  and  interest  is  being  paid  from 
the  water  fund. 

INTEREST  is  payable  as  follows:  Fund- 
ing bonds  of  1891  and  funding  bonds  of  1893 
(first  and  second  series)  at  Seattle  or  at 
Harris,  Forbes  &  Co.,  N.  Y.  City;  funding 
bonds  due  1931  and  1933  at  fiscal  agency  in 
N.  Y.  City  or  at  City  Treas.  office;  sewer 
tunnel  bonds  of  1893  and  sewer  bonds  of  1893 
at  City  Treasurer's  office  or  at  Blair  &  Co., 
N.  Y.  City ;  library-site  bonds  at  City  Treas- 
urer's office  or  fiscal  agency,  N.  Y.  City; 
Municipal-light  and  power-plant  bonds  (series 
A  and  B),  State  Treasurers  office;  municipal- 
light  and  and  power-plant-extension  and  park 
bonds  due  July  1,  1932,  at  City  Treasurer's  of- 
fice, and  fiscal  agency.  New  York  City;  park 
bonds  due  1931,  the  refuse-disposal-plant  bonds 
and  bonds  of  1912  at  fiscal  agency  in  N.  Y. 
City  (Equitable  Trust  Co.).  All  the  other 
bonds,  except  those  of  the  annexed  cities, 
at  City  Treasurer's  office  or  at  fiscal  agency 
in  New  York.  Interest  on  the  annexed  cities' 
bonds  is  payable  as  follows:  On  refunding 
bonds,  the  water-works  bonds  due  1917  ana 
1924  and  on  the  general  municipal  bonds,  at 
the  fiscal  agency  in  N.  Y.  City;  on  the  fund- 
ing bonds  at  the  Harris  Trust  &  Savings 
Bank,  Chicago;  on  the  water-works  bonds 
due  1915  at  the  Chemical  Nat.  Bank,  N.  Y. 
City,  and  on  the  water-works  bonds  due  1922 
at  the  State  Treasurer's  office. 

TOTAL     DEBT,     etc. — Cash     in     treasury 

Apr.     1,     1914 $1,330,721.05 

Apr.  1  '14        Apr.  1  '13 

Bonded   debt $15,440,400     $15,258,400 

Floating   debt    None  None 

Total    $15,440,400     $15,258,400 

Water  debt    (inclu.)..     2,572,241         2,625,827 

In  addition  to  the  above  debt,  the  city  had 
outstanding  March  1,  1914,  $8,762,680.99  of 
assessment  bonds  and  $2,316,162.53  of  as- 
sessment warrants,  both  a  lien  only  against 
benefited  property. 

DEBT  LIMITATION.— The  limitation  of 
bonded  indebtedness  is  10%  of  the  assessed 
valuation,  of  which  5%  is  for  water,  light 
and    sewers   and    5%    for    general    purposes. 

CITY  PROPERTY— Jan.  1,  1914,  the  city 
owned  personal  property,  real  estate  and  se- 
curities valued  at  $29,735,473.  This  total  is 
exclusive  of  highways,  sewers  and  cash. 

ASSESSED  VALUATION. —  Assessment 
about   45%   actual  value. — 

1913  1912 

Real     estate $178,468,225     $176,975,528 

Personal    36,893,926         35,953,520 

Total    $215,362,151      $212,929,048 

Tax    (per    $1,000)..  543.87  34.57 

■CITY  TAX  RATE  (per  $1,000)  for  1913 
in  the  "old  limits"  was  $19.86;  in  the  "new 
limits"  it  was  $19.31  and  in  South  Seattle 
$17.63.  The  total  tax  rate  for  1913  was  $43.87, 
incl.  State,  county,  city,  school  and  Port  of 
Seattle. 

POPULATION  in  1910  (Census)  was  237,- 
194;  in  1900  (Census),  80,671;  in  1890,  42,- 
837;   in    1880,   3,533. 

SEATTLE  SCHOOL  DISTRICT  NO.  1 
This  school  district  is  in  King  County,  and 
includes   the   city   of  Seattle. 
School   Bonds. 

5s      '95  J-J    $400.000c July  1   1915 

4s      '02  M-S   275,000c Mar  1   1922 

454s '03  A-O   100,000c Oct    1    1923 

454s '04  M-N  300,000c May  1   1924 

454s  '00  M-S    200,000c Sept  1  1920 

4s      '06  J-J      500,000c Jan    1   1926 

454s  '08  M-N  300,000c May  1   1928 

4s      '08  M-N  200,000c May  1   1928 


(Compiled  by  the  Commercial  and  Financial  Chronicle.} 


126 


WASHINGTON  CITIES  AND  TOWNS 


SEATTLE— Concluded. 

4s      09  M-N    400,000c May  1   1929 

4'As'U  M-S   400,000c Mch  1   '15-'30 

4^s'12  M-S    510,000c Mch  1  '15-'31 

4}4s'll   M-S   100,000c Mch  1    1931 

4Hs'13  M-S    200,000c Mar  1  '15-'33 

5s      '13  M-S    437,000c Mar  1  '15-'33 

5s      '14  A-O    361,000c 1916-1934 

4'As  '14  A-O    152,000c 

So.  Park  District  No.  9  (Annexed). 
5s  '01  M-S     $3,000c Sept  1921 

Rainier  Val.  District  No.   18   (Annexed). 
4s '03  July   $15,000c July   1923 

W.   Seattle  District  No.  73    (Annexed). 
4'As  '08  J-D    $55,OOOc June   1928 

Bullard    District    No.    50    (Annexed). 

4^s'03  F-A     $20,000c Feb      11923 

4Hs'99  M-S       10,000c Sept     11919 

4</4s  '01    M-S         8,000c Sept  20   1921 

3*Ss'07  F-A        70,000c Mar     11927 

Georgetown   Dists.    143  and   153    (Annexed). 

4^s  '04   T-D    $20,000c June  4   1924 

■»54?_'09_M-S     20,000c Mar    1    1929 


SNOHOMISH    COUNTY. 

County    seat    is    Everett. 

Refunding     (Subject     to     call). 
3Ks         $53,000 Aug  1    1925 

Funding   Bonds    (Red.    beg.    in    1921). 

5s  '1 1    $100,000 Jan  2   1931 

BONDED  DEBT  Feb  '13 $      153,000 

Warrant   debt  Jan    1    '13 194,253 

Cash   on   hand  Jan    1   '13 115,742 

Assessed   valuation   '11    (48%    act).    38,737,641 
State  and  Co.  tax  (per  $1,000)   '11.  17.50 

Population   in    1910 59,209 

INTEREST  on  344s  payable  at  Olympia ; 
on  bonds  of  1911  at  the  County  Treasurer's 
office  or  at  Equitable  Trust  Co.,   N.   Y.   City. 


BONDED   DEBT  June  30  '14.. 
Sinking  fund 


4,904,000 

244,334 

Assessed  valuation  '13   (45%  act.)   218,046,671 

School    tax    (per    $1,000)    '13 6.00 

Value  of   school   property 6,315,190 

Population    in     1910 237,194 

INTEREST  on  4^s  of  1911  payable  in 
Chicago  (Harris  Tr.  &  Sav.  Bank)  or  N.  Y. 
City;  on  $200,000  4^s  of  1913  at  State  Treas- 
urer's office  in  Olympia;  all  other  bonds  at 
office  of  County  Treasurer  or  at  State  fiscal 
agency  in  N.  Y.  City  (Equitable  Trust  Co.). 


SKAGIT  COUNTY. 

Mt.   Vernon   is  the   county   seat. 

Refunding  Bonds   (Red.  beg.  in   1914). 
3&s04    J-D    $100,000 June  1    1924 

Refunding  Warrant    (Red.    beg.    in    1921). 

4^s'll    A-O    $100,000 Apr  1    1931 

BONDED  DEBT  Sept  21  '14 $      200,000 

Assessed   valuation    '13    (31%    act.)   14,367,727 
State  and  Co.   tax    (per  $1,000)    '13  29.00 

Population    in     1910 29,241 

INTEREST    on    354s    at    State    Treasurer's 
office;  on  4^s  at  N.  W.   Halsey  &  Co.,  Chi. 


SNOHOMISH 

This  city  is  in   Snohomish   County.     Incor- 
porated in  1890. 
Special     water     bonds     payable     from 

water    rent     collections $  82,500 

Coupon  water  bonds  payable  from  tax 

levy     15,000 

Refunded    water    bonds    payable    from 

tax    levy     28,000 

BONDED  DEBT  Oct  19,  '14 125,000 

Assessed   valuation    '13    (35%    act.).    1,177,235 

Total  tax   rate    (per  $1,000)    '13 44.60 

Population    1910    3.244 

INTEREST  on  3J4s  at  Olympia;  on  5s  at 
County  Treasurer's  office  or  Equitable  Trust 
Co.,   N.   Y. 


SPOKANE. 

This  city  is  in  Spokane  County.  Incorpo- 
rated Nov.  29,  1881.  Commission  government 
adopted  in  Dec,    1910. 

Funding    Bonds. 
5"^s         F-A     $300,000c Feb  1    1918 

Crematory    Bonds    (Tax-Exempt). 
4^s'09  F-A     $70,000c Feb   1    1929 

Bridge    Bonds    (Tax-Exempt). 

4Ks  g  r07  J-D  $400,000c Dec    1    1933 

4j4sg'09  J-J       500,000c July   1   1934 

4Ag     '11  J-J      415,000c July   1   1931 

Park    Bonds. 

5s  J-D     $100,000c Dec   1    1927 

4"4g'12  J-J       875,000c Jan    11962 

Water  Bonds. 

4s  g      '05  J-J     $450,000c Julyl    1925 

4"^sg'10J-J      400,000c Jan     11935 

Refunding    Water    Bonds. 
4'Ag'U  A-O     $500,0O0c Oct  1   1931 

Refunding    Municipal    Bonds. 

4'^g'll   A-O    $700,000c Oct  1   1931 

GEN.    BONDS   Mar  31    '14 $  3,360,000 

Water    debt    (additional) 1,400,000 

Assessment  debt   (additional) 4,458,602 

Floating   debt    414.036 

TOTAL    DEBT    Mar   31    '14 9,632,638 

Sinking  fund    141,227 

NET   DEBT   Mar   31    '14 9,491,411 

Assessed  valuation   '13    (3-5  act.)..   89,987,215 

City  tax  rate  (per  $1,000)   '13 12.00 

Total   tax    (per  $1,000)    '13 33.50 

Population    in    1910     (Census) 104.237 

In  addition  to  the  bonds  given  above  there 
are  outstanding  $1,185,000  5%  (J.  &  D.) 
coupon  water  bonds  due  Dec.  1,  1914-31  and 
$78,000  6%  (J.  &  J.)  water-works  warrants. 
These  are  not  payable  from  the  general  tax 
levy  but  are  secured  by  a  lien  upon  the  gross 
revenues   of   the   water-works. 

Assessment  bonds  are  not  considered  city 
debt,   being   payable   by    special   assessment. 

CITY  PROPERTY.— The  city  inventory 
on  Jan.  1,  1914,  showed  real  estate,  build- 
ings, library  department  equipments,  etc.,  to 
the  value  of  $9,447,880,  including  water  sys- 
tem  valued   at   $4,802,994. 

INTEREST  and  principal  of  city  bonds 
payable  in  New  York  City  at  Equitable  Trust 
Co. 


SPOKANE    SCHOOL    DISTRICT    NO.    81. 

Building    Bonds. 

5s      '98  J-J      $  50,000c Jan     1     1918 

4s      '02  F-A        80,000c Aug    1    '15-'22 

4"4s'04  M-S      200,000c Mch    1   1924 

4<4s'07  J-J         200,000c July     1    1927 

(Subject    to    call    after    July     1     1917.) 

4^s'08  J-J    $250,OOOc July   1    1928 

4>As'09  J-J      400,000c July   1    1929 

5s      '06  M-N     10,500c Nov   1    1926 

(Subject  to  call  after  Nov   1    1916.) 
6s     '04  F-A     $3, 000c Aug  1   1919 

(Subject    to    call    after    Aug    1    1914.) 
5^s'04   $4,000c Aug  1    1924 

(Subject    to   call   after   Aug    1    1914.) 

4"^s'll  M-N    $500,000c May   1    1931 

4Ks'12  J-J       250,000c Julyl   1932 

Refunding    Bonds. 

4Hs'10J-J    $250,O00c Julyl    1930 

BONDED  DEBT  Sept  1  '14 $  2,197,500 

Floating   debt    227,512 

Assessed  valuation   '13    ('A   act.)...   90,192,565 

School  tax   (per  $1,000)    '13 5.50 

Population  in   1913    (estimated) 110,000 

INTEREST  on  bonds  due  Aug.  1,  1924, 
payable  at  County  Treasurer's  office;  on  4^2S 
due  March  1,  1924  at  County  treasurer's  of- 
fice or  at  State  fiscal  agency  in  New  York 
City  (Equitable  Trust  Co.)  and  on  bonds  of 
1907  and  1912  in  N.  Y.  City  at  Equitable 
Trust    Co. 


SPOKANE   SCHOOL   DISTRICT   NO.   122. 

School-Building  Bonds.    (Tax-Exempt). 

5s  '07  J-D  $25,000c June   1    1922 

(Subject  to   call   after   Tune    1,    1917.) 

5s '12  A-O    $20.000c Apr   1    1932 

BONDED   DEBT  Sept    1    '14 $      45,000 

Floating   debt    5,656 

Sinking    fund     2,753 

Assessed  valuation  '13   (A  act.) 1,772.862 

School  tax    (per  $1,000)    '13 38.00 

Population   in    1913    (estimated) 5,000 

INTEREST    on    5s   at   fiscal   agency    in    N. 
Y.    City    (Equitable   Trust    Co.). 


SPOKANE   COUNTY. 

County    seat   is   Spokane. 

Refunding  Bonds  (Red.  beg.  in  '11). 
4s '01  J-D  fl29,000c Dec  2  1921 

Court  House  and  Jail  Bonds. 

4^s'03  A-O    $270,000c Oct   1    1923 

(Subject    to    call    after    Oct    1     1913.) 
BONDED   DEBT  Sept    19   '14...$        399,000 

Warrants  outstanding 34,499 

Cash  on  hand 196.300 

Assessed      valuation      '13      (about 

42%    actual)    122,492.478 

State  and  Co.  tax  (per  $1,000)  '13  16.00 

Population  in    1910 139,404 

INTEREST  at  fiscal  agency  in  New  York. 


(Compiled  by  the  Commercial  and  Financial  Chronicle.) 


EYMAN  &  CO. 


INCORPORATED 


INVESTMENT 
BANKERS 

SEATTLE,  WASH. 


Specialists  in  HIGH  GRADE 
TAX  SECURED  BONDS 
originating  in  the  Pacific 
Northwest.  Investments 
suitable  for  Banks,  Insur- 
ance Companies,  Estates  and 
Individuals  —  Exempt  from 
Income  Tax — To  net  6%  to 
1%.  Correspondence  invited. 


John  E.  Price  &  Co. 

INVESTMENT  BANKERS 

ESTABLISHED  1902 


Transact  a  general  investment  banking 
business. 

Purchase  outright  entire  issues  of  Mu- 
nicipal, Local    Improvement  District, 
Corporation  and  Timber 

Bonds  of  the  Pacific  Northwest 

The  great  strides  in  growth  of  popula- 
tion and  wealth  of  Washington,  Oregon, 
Idaho  and  Montana  are  making  availa- 
ble millions  of  dollars  of  excellent 
securities  of  the  character  indicated 
above.  Lists  of  bonds  which  we  have 
purchased  for  our  own  account  and 
can  recommend  for  their  security  and 
high    income  yield    gladly  furnished. 


Hoge  Building,  Cor.  Second  Ave.  and  Cherry  St. 
SEATTLE 


Attention  is  called  to  the 
announcement  on  page  II 


WASHINGTON  CITIES  AND  TOWNS 


1-27 


STEVENS    COUNTY. 

County  seat  is  Colville.  A  portion  of  this 
county  has  been  taken  to  form  the  new  Ferry 
County. 

Refunding  Bonds. 
4>/1s'0>  I -J      $35,OO0c Mar  1   1922 

Refunding  Bonds. 

4J4s'02  M-N     $184.000c Nov  1   1929 

(Subject    to   call   after   Nov    1    1919.) 

BONDED    DEBT    Sept    19    '14 $    239,000 

Assessed   valuation    '14 8,910.941 

State  and   Co.   tax    (per  $1,000)    '14  28.00 

Population     in     1910     19,270 

INTEREST    payable    in    N.    Y.    City. 


TACOMA. 

Tacoma  is  the  county  seat  of  Pierce  County. 
Incorporated    Nov.    8,    1883. 

Bridge    Bonds. 

4J4s'09  J-D    $300,000c July  1   1929 

4Kis'l»J-J       543,000c Jan    11932 

4>4s'13   MS        35,000c Mar   15   1928 

Refunding    Bridge    Bonds. 

"13  s-an   $90,000c June  1 


15-'17 
1920 


Funding    Bonds. 
Ssg'OO  VA    $1, 093,000c Feb  15 

Refunding  Bonds. 
4j4s'll  A-O     $518,000c Apr  1   1931 

Surface  Water  Drainage   Bonds. 

4!4s'09J-J    $  75,000c July  1   1929 

4Kg'10   FA    100,000c Aug   1    1930 

Green   River   Gravity   Water   Bonds. 
4^s'10  J- J    $500,000c July   1    1930 

Refunding   Light    Bonds. 
5s      '13  s-an     $250,OOOc June  1  '18-'21 

Refunding  Water   Bonds. 
5s      '13  s-a     $l,75O.0OOc June  1  '22-'33 

Light   and    Power-Plant    Bonds. 
4J4sT09  JJ     $300,000c Jan   1   1929 

Wharf  and   Dock    Bonds. 
4!4g'll  J  J     $405,000c Jan  1   1931 

Road    Bonds. 

4J4s'13  M-S     $117,000c 

(Due  $8,000  yearly  for  15  years  and  $5,000  in 

16  years.) 

GEN.    HD.    DEBT  Sept   1   '14 $  6.076,000 

Water   and   light   debt    (additional.   "3,507,904 
Improvement  debt    (additional)....      1,617,913 

TOTAL  DEBT  Sept  1  '14 11,201,817 

Sinking    fund    assets 300,319 

NET  DEBT  Sept    1    '14 10,901,498 

Assessed    valuation,    real 48,396,653 

Assessed     valuation,     personal     and 

public    service    corporation 25,892,923 

Total    valuation    '13    (3-5   act.) 73,298,458 

Total  tax   (per  $1,000)   '13 36.20 

Population   in    1910    83,743 

Population    in     1914     (estimated) 110,000 

This  debt  consists  of  water  and  light  and 
power  plant  bonds  maturing  from  1  to  20 
years.  These  are  not  payable  from  the  gen- 
eral tax  levy,  but  are  paid  out  of  revenue  of 
water  and  light  plant*, 

INTEREST 


City 


on  local  improvement  bonds  at 
Treasurer's     office ;     other     interest     at 


Equitable  Trust  Co.,  N.  Y. 

TACOMA    SCHOOL   DISTRICT    NO.    10. 

Building    Bonds. 

4 'is '05  MS  $200,000c Sept     1  1925 

4'..s'llann     "290,000c July      11931 

4J4s'12  ann    "200,000c Dec    31   1932 

4J4s  '13  July  "200,000 July    1   1933 

Refunding    Bonds. 

4^s '00  FA  $100,000c Feb  1   1920 

BONDED  DEBT  Mar  1   '14 $      990,000 

Sinking    fund     33,243 

Value  school   property   '13 2.644.522 

Assessed   valuation   '13    (>A    act.)..   77,892,299 

Tax   rate   (per  $1,000)    '13 5.15 

Population    in     1913     (estimated) 100,000 

"Redeemable    beg.    1    year    after   date. 

INTEREST   Equitable  Trust   Co.,  N.   Y. 

WALLA   WALLA. 

This   city   is   in    Walla   Walla   County.      In- 
corporated in    1862. 

Water    and    Sewer    Bonds    (Tax-Exempt). 
5s  '99  Jan    $159,0O0c 1926 

Refunding   Bonds.    (Tax-Exempt). 
4J4sg'12  J-J  $40j000c Tan   1    1932 

City-Hall    and    Fire-Station    Bonds. 
Ssg'08  J-J    $100,000c Jan  1   1928 

Municipal    Improvement    Bonds. 
5s  &  6s     $41,403.54c 

Water-Works  Bonds   (Tax-Exempt). 

AYit'99  M-S     $133.000c 1919 

5sg'06  Nov        213,000c 1936 

(Subject    to    call.) 

GEN.    BONDS    Oct    '14 $    686,404 

Assessment    debt    (additional) 236,797 

Floating  debt    90,042 

Cash     on     hand 22.042 

Assessed   valuation    "14    (40%    act.).  9,359,712 

Tax  rate  (per  $1,000)   '14 13.00 

Population    1910    19,364 

INTEREST  in  W.   W.   and   N.   Y.   City. 


WENATCHEE. 

This    city    is    in    Chelan    County.      Incorpo- 
rated  Dec   26,   1892. 

Warrant   Funding   Bonds. 
5s '12     $9,500 1932 

Municipal  Purpose  Bonds. 

5s '09     $40,000 1924 

5s '10     50,000 1930 

General    Bonds. 
S'As'U  J-D  $15,000 Dec  15  1932 

Water  Bonds. 

6s      '01    $  7,500 1921 

4}<Ss  '04    16,000 1924 

*</,*  '08 55,000 1928 

5!4s'12  J-D      27,000 Dec  15   1932 

BONDED  DEBT  Dec  31   '13 $    220.500 

Warrants  outstanding   115,969 

Assessed  valuation  '13   (60%  act.)..   3,108.970 

City  tax   (per  $1,000)   '13 17.25 

Population     in     1910 4,050 

INTEREST    at    City    Treasurer's    office. 


1. 


WALLA  WALLA   CO.   S.   D.   NO. 

All    bonds    are    tax-exempt. 

Funding  and  Building  Bonds. 

4J4s'03   $63,000c Sept  21   1923 

4J4s'08  M-S       30,000c Sept  15  1928 

(Subject  to  call  after  Sept    15    1918.) 

4s      '09  ann    $167,OO0c 1926 

(Subject    to    call    at    any    time.) 

5s'10  F-A    $50.000c Aug  1   1930 

BONDED   DEBT  Apr   18  '14 $      310,000 

Assessed  valuation  '13    (3-5  act.)..   10,659,981 
School  tax   (per  $1,000)   '13 5.15 

INT.   at   Harris   T.    &   Sav.,   Chicago. 

WALLA    WALLA    CO.    S.    D.    NO.    24. 

Funding  and  Building  Bonds. 

5V5s'llann   $35,000c Aug    1    1921 

(Subject   to  call  $5,000   after  3   years,   $5,000 

after   5    years  and    $10,000   after    10   years.) 

TOTAL    DEBT   Apr    18   '14 $    35,000 

Assessed  valuation  '13    (3-5  act.)...    1,193,492 
School    tax   rate    (per    $1,000) . '13. .  11.75 

Interest    at    County    Treasurer's    office. 


WHATCOM   COUNTY. 

County  seat  is   BftUinsfaam. 

Refunding    Bonds.    (Red.    beg.   in   '12). 

4'As         J-J      160,000c Jan   1    1922 

GEN.   BD.   DEBT  Jan   1    '14 $      160,000 

Assessment    debt    (additional) 29,114 

Floating   debt    347,875 

TOTAL  DEBT  Ian  1  '14 536,989 

Sinking  fund  ana  cash 28,963 

Assessed  valuation  '13  (2-5  act.)..  25,718.955 
State  and   Co.   tax    (per  $1,000)    '13  30.16 

Population    in    1910 49,511 

INTEREST   is  payable  at  fiscal   agency  in 
N.    V.    (Equitable  Trust  Co.) 

WHITMAN  CO.   S.  D.   NO.  59. 

Refunding  Bonds. 

5s '06    F-A    $25,000c 1926 

(Subject    to    call    beginning    1921.) 

High-School-Building  Bonds. 
5s '13   A-O   $25,000c Apr  1   1933 

(Subject    to   call    beginning    Apr    1    1922.) 

BONDED   DEBT  Sept    19*14 $      50,000 

Floating  debt  Apr  24  M  4 20,469 

Assessed  valuation  '13    (45%    act.).    1,260,327 

INT.  at   Co.  Treas.   office  or  New   York. 

YAKIMA    COUNTY. 

County   seat   is   North    Yakima. 

County  Bonds. 

5Hs'89  A-O    $80,000cXr 1919 

4s      '06  Mar      80,000c  &  r 1926 

BONDED  DEBT  Sept  1  '14 $      160,000 

Warrants   out.    (County    funds)....  13,875 

Warrants  out.   (road  dist.  funds)...  32,795 

Cash    in    road    funds 7,389 

Sinking  fund  and  cash  (Co.  funds)  120,274 
Uncollected  tax  due  (Co.  funds)..  155,592 
Assessed  valuation  '14  (l/2  act.)..  37,246,145 
State  and  Co.  tax   (per  $1,000)   '13  18.86 

Population   in    1910    (Federal) 41,709 

Population  in   1914  (local) 50,465 

INTEREST   in   N.    Y.   and   San   Francisco. 


(Compiled  by  the  Commercial  and  Financial  Chronicle.) 


BOLGER,  M0SSER  &  WlLLAMAN 
BANKERS 

Established  In  1894 

MUNICIPAL  BONDS 


State,  County,  City,  School,  Road 

and  Drainage  District 

Bonds. 

Our  twenty  years'  experience  in 
the  selection  and  sale  of  municipal 
bonds  has  convinced  us  (and  our 
clients  also)  that  bonds  payable 
from  taxes  are  the  most  reliable 
and  desirable  form  of  investment. 
Their  market  value  is  stable  and 
the  payment  of  principal,  as  well 
as  interest,  is  assured. 

We  solicit  correspondence  and  interviews  with 
investors  desiring  safe,  conserva- 
tive bonds. 

Second  Floor,  29  S.  LaSalle  St. 
Chicago,  111. 


McCoy  &  Company 

Investment  Bonds 

105  South  La  Salle  St.        Chicago,  111. 


Municipals 

County,  City   and   School  District 

To  yield  4h  to  51% 

Public  Utility 

Issues  secured  by  established,  well 
managed   properties   operating 
in  the  east  and  middle  west. 
To  yield  5h  to  6% 

Timber  Land 

Bonds,  being  first  liens  on  selected 
tracts  of  merchantable  timber, 
examined  and  cruised  by 
experts      .      .      To  yield  6  to  7% 


Suitable  for  investment  of  banks,  trust  funds, 
insurance  companies,  fraternal  organizations,  pos- 
tal savings  deposits,  and  for  conservative  investors. 

Further  details  cheerfully  furnished  upon  request 


Attention   is  called   to  the 
announcement  on  page  II 


Bonds  of  public  service  companies,  amply  secured  by 
property  and  earning  power,  can  now  be  purchased  at 
prices  to  yield  from  5%  to  6%.  Bonds  of  such  companies 
located  in  thriving  cities  and  supplying  the  necessities  of 
the  public  in  transportation,  light,  heat  and  power  are 
little   affected   by    fluctuations   in   business   conditions. 

We  shall  be  glad  to  send  offerings  and  detailed 
information  upon  request. 


Lee,  Higginson  &  Co. 

BOSTON 

New  York  Chicago 

Portland  Worcester 

Hartford  Providence 

Higginson  &  Co.,  London 


Investment  Securities  Letters  of  Credit 


Foreign  Exchange 

DRAWN  ON 

Messrs.  N.  M.  ROTHSCHILD  &  SONS     ....     London 

Messrs.  COUTTS  &  COMPANY London 

Messrs.  GLYN,  MILLS,  CURRIE  &  COMPANY  .  London 
Messrs.  MORGAN,  HARJES  &  COMPANY  .  .  Paris 
Messrs.  M.  M.  WARBURG  &  COMPANY  .  .  Hamburg 
Messrs.  GERBRUDER  SCHICKLER Berlin 

Members 

NEW  YORK,  BOSTON,  PHILADELPHIA  and  CHICAGO 

STOCK  EXCHANGES 


Attention  is  called  to  the 
123  announcement  on  page  n 


CORPORATION 
SECTION 


E.  H.  ROLLINS  &  SONS 

FOUNDED  1876 

INVESTMENT  BONDS 


E.  H.  ROLLINS  &  SONS'  SHARE  IN  CALIFORNIA'S  DEVELOPMENT 

During  the  last  twenty  years  the  financial  and  commercial  growth  of  the  State  of  California  has 
been  the  greatest  in  its  history  and  almost  unparalleled  by  that  of  any  other  section  of  the  United  States. 
Foreseeing  this  growth  and  the  consequent  demand  for  capital  necessary  to  develop  the  natural  resources 
and  wealth  of  the  State,  E.  H.  Rollins  &  Sons,  Investment  Bankers,  opened  in  1894  a  branch  office  in  San 
Francisco  and  were 

THE  FIRST  BOND  HOUSE  ESTABLISHED  IN  CALIFORNIA. 

Since  then  through  the  purchase  of  Municipal  Bonds  they  have  assisted  in  the  upbuilding  and  im- 
provement of  practically  every  section  of  the  State,  and  by  furnishing  Public  Service  Corporations  with 
large  sums  required  for  their  development  they  have  been  financially  associated  with  the  remarkable  growth 
of  most  of  the  important  companies  in   the   California  Public  Utility  field. 

Following  are  the  chief  California  Public  Utility  Corporations  whose  bonds  have  been  purchased  by 
E.  H.  Rollins  &  Sons  and  their  associates  to  an  amount  of  approximately  $100,000,000.  Their  annual  gross 
earnings  are  now  in  excess  of  $35,000,000. 


♦American  River  Electric  Co. 
♦Bay  Counties   Power  Company. 
♦Blue  Lakes  Water  Company. 

California  Delta  Farms,  Inc. 

California   Electric   Generating   Co. 

Coast  Valleys  Gas  &  Electric  Co. 
♦Edison  Electric  Co.  of  Los  Angeles. 
♦Fresno  Traction   Company. 

Great  Western  Power  Company. 

Huntington  Land  &  Improvement  Co. 

Long  Beach  Consolidated  Gas  Co. 
♦Los  Angeles  Gas  &  Electric  Co. 

Los  Angeles  Gas  &  Electric  Corp. 


Los  Angeles  Railway  Corporation. 

Market  Street  Cable  Railway  Co.  (S.  F.) 
♦Mutual  Electric  Light  Company. 

Oakland  Transit  Company. 
♦Oro  Water,  Light  &  Power  Company. 

Petaluma  &  Santa  Rosa  Rwy.  Co. 

San  Francisco,  Napa  &  Calistoga  Rwy. 

Santa  Barbara  Gas  &  Electric  Co. 

Southern   California   Edison   Co. 
♦Stockton  Gas  &  Electric  Corp. 
♦United  Electric  Gas  &  Power  Co. 

Western   Power   Company. 

Western  States  Gas  &  Electric  Co. 


"Ten  issues  of  bonds  put  out  by  the  above  companies  have,  since  E.  H.  Rollins  &  Sons  handled  them,  become  underlying  liens. 
The  issues  in  question  are  indicated  by  a  star. 

Since  1894  E.  H.  Rollins  &  Sons  and  their  associates  have  purchased  over  $5,000,000  of  State  of  Cali- 
fornia bonds  for  harbor  and  highway  purposes.  They  have  furnished  funds  for  the  improvement  of  all 
of  its  important  counties,  cities  and  many  of  its  minor  political  subdivisions,  including  over  $10,000,000  for 
the  reconstruction  and  improvement  of  the  City  of  San  Francisco  and  the  construction  of  the  Panama- 
Pacific  International  Exposition;  also  about  $24,500,000  for  general  civic  improvements  for  the  City  of  Los 
Angeles,  including  the  important  Owens  River  Aqueduct.  The  activities  of  E.  H.  Rollins  &  Sons  along  the 
above  lines  represent  the  furnishing  of  approximately  $62,000,000  to  the  State  of  California  and  ninety-two 
of  its  counties,   municipalities  and   political   subdivisions. 

In  the  Public  Utility  field  the  financing  arranged  through  E.  H.  Rollins  &  Sons  has  enabled — 

The  extension  of  the  street  railway  systems  in  San  Francisco,  Los  Angeles  and 
Oakland; 

The  development  of  the  Bay  Counties  Power  Company  which  was  the  first  company  in 
the  world  to  successfully  transmit  electric  power  over  a  long  distance; 

The  completion  of  Southern  California  Edison  Company's  original  hydro-electric 
installation  on  the  Kern  River  and  its  steam  station  of  63,000  H.P.  near  Los  Angeles; 

The  construction  and  extension  of  the  Great  Western  Power  Company's  hydro-electric 
installation  (now  82,000  H.  P.)  on  the  Feather  river  and  its  storage  reservoir  in  Big  Meadows. 
This  reservoir,  when  fully  developed,  will  be,  next  to  the  lake  impounded  by  the  Asuan  Dam 
in  Egypt,  the  largest  artificial  body  of  water  in  the  world. 

Write  for  information  regarding  California's  progress,  the  probable  effect  the  Panama  Canal  will 
have  upon  its  future,  its  Public  Utility  Corporations,  and  the  safeguards  furnished  to  the  conservative 
investor  by  its  laws. 

As  E.  H.  Rollins  &  Sons  have  head  offices  in  Boston  and  New  York  and  branches  in  the  important  financial  cities  of  Chicago. 
Philadelphia,  Denver,  Los  Angeles  and  San  Francisco,  they  are  familiar  with  most  of  the  important  Public  Utility  Companies  and 
general  financial  conditions  throughout  the  country.  On  request  information  and  advice  as  to  the  soundness  of  Municipal  and  Corpora- 
tion Bonds  will  be  gladly  given  to  prospective  purchasers  or  holders  of  securities. 

E.  H.  Rollins  &  Sons,  after  careful  investigation  by  their  attorneys,  engineers  and  commercial  experts,  have  purchased  for  their 
own  account  bond  issues  of  cities  and  corporations  located  in  all  parts  of  the  United  States.  Circulars  describing  Corporation  Bonds 
yielding  from  5%  to  more  than  6%,  and  State,  County  and  Municipal  issues  yielding  from  4%  to  more  than  5%  will  be  forwarded 
on  request. 


FIRST  NATIONAL  BANK  BUILDING 
SAN  FRANCISCO 


SECURITY  BUILDING 
LOS  ANGELES 


BOSTON 
200  Devonshire  St. 


NEW  YORK 
43  Exchange  Place 


CHICAGO 

234  So.  LaSalle  St. 


DENVER 
Int'l  Trust  Bldg. 


LONDON 

5  Copthall  Court 


130 


Attention  is  called  to  the- 
announcement  on  page  II 


Securities  and  Reports 

of 


Public  Service  and  Miscellaneous  Corporations 

of  the  Pacific  Coast 


Alaska  Packers'  Association,  San  Francisco,  Cat. 
The  operations  of  the  company  consists  of  catching  and 
packing  of  salmon  in  Alaska  and  Puget  Sound  waters.  The 
company  owns  and  operates  a  fleet  of  steamers,  sailing 
vessels,  canneries  and  hatcheries. 

Capitalization. 

Stocks —                                                      Authorized.        Outstanding. 
Common     $7,500,000  $5,750,000 

Funded  Debt — 
Bonds     2,000,000  815,000 

Physical  Property. 
The  company  owns  9  ships,  12  barks,  1  barkentine,  3 
schooners  and  63  steamers  and  launches,  a  total  of  88  ves- 
sels appraised  at  $1,505,850.  The  company  operated  in  1913 
14  canneries  in  Alaska  and  3  on  Puget  Sound  and  2  sal- 
mon hatcheries  in  Alaska.  From  68,760,000  red  salmon 
eggs  taken  in  1912  at  these  two  hatcheries,  62,603,000  fry 
were  liberated  in  1913.  44,109,160  red  salmon  eggs  were 
taken  at  the  two  hatcheries  in  1913.  The  company  also 
owns  and  operates  a  ship  yard  at  Alameda  on  San  Fran- 
cisco Bay.  The  company  carries  its  own  insurance  on  all 
its  property  and  operations.  The  insurance  fund  in  1913 
was  $1,841,248.39,  of  which  $1,537,500  is  invested  in  bonds. 

Statistics. 
The  following  table  shows  the  number  of  canneries  oper- 
ated and  cases  packed: 


1904 — 21 — 1,170,474 
1905 — 16 — 1,139.721 
1906 — 16—1,044,676 


1907- 

190S- 

1909- 
1913- 


-17- 

-17- 


•1,100.035 
•1,160,477 
■1,338,254 
-1,504,415 


1910 — 15 —  971,716 
1911 — 16—1,053,015 
1912 — 15 — 1,202,779 


Earnings. 
1910  $517,009 — 1911   $631,899—1912  $372,832—1913  $148,380 


Officers. 


Henry    F.    Fortmann,    Pres. 
Louis    Sloss,    V.-P. 
William  Timson,  V.-P. 


Isaac    Liebes,    Treas. 
A.    K.    Tichenor,    Secy. 
G.    E.    Geary,    Cashier. 


Amalgamated  Copper  Co.,  -V.-w  York,  N.  Y. 

The  company  is  a  holding  company  and  does  not  operate 
any  mining,  milling  or  smelting  properties. 

Subsidiary  Companies. 
Anaconda  Copper  Mining  Co.  The  United  Metals  Selling  Co. 

Capitalization. 

storks —  Authorized  Outstanding 

Common $155,000,000  $153,887,900 

Funded  Debt — 
2  year,  5%  gold  notes,  due  March 

15,  1915    12,500,000  12,500,000 

Physical   Property. 

The  company  owns  the  entire  capital  stock  of  the  United 
Metals  Selling  Co.  It  owns  a  controlling  interest  in  the 
Anaconda  Copper  Mining  Co.  ($79,609,150  out  of  the  capital 
Ftock  $108,312,500).  It  also  owns  $3,080,000  of  the  capital 
stock  of  the  Green-Cananea  Copper  Co.  and  150,000  shares 
of  the  Inspiration  Consolidated  Copper  Company. 

Earnings. 

Nett 

Year                                                    Earnings.  Dividends.     Balance. 

1910 $5,963,968  $3,077,758     $2,886,210 

1911   6,048.896  3,077,758        2,971,138 

1912   6.647,006  3,847,198        2,799,808 

1912  (8  mo.  ending  12/31) 6,595,611        3,847.198        2,748.413 

1913    8.871,799        9,233,274         <i361,475 

•Deficit. 

tNet  earnings  are  shown  after  deducting  operating  expenses 
and  taxes. 

Dividends. 

02     03  04      05     06  07  08  to  11   12  13  14 

Per  cent  ...2\i      2     2     4ft      7     7     2  yrly     4     6     1%-Hi      1% 

Officers. 

John  D.  Ryan,  Pres.  A.   H.   Melin.  Sec'y  and  Treas. 

D.  B.  Hennessy,  Asst.  Sec'y  and  Asst.  Treas. 

American  Smelting  and  Refining  Co.,  and  the 
American  Smelters  Securities  Co.    -Ww  York. 

The  operations  of  these  companies  consist  of  mining 
or  otherwise  acquiring  gold,  silver,  copper,  lead  and  other 
ores;  dealing  in  such  ores  and  their  products;  and  cf 
smelting,  refining,  milling  or  otherwise  treating  same. 

Subsidiary  Companies. 

(Amer.   S.   &   R.    Co.)  A.  S.  Steamship  Co.  Federal    Lead. 

Con.  K.  C.  S.  &  R.  Co.  Nat'l     Metullurg.    Co.  Garfield    S.    Co. 

U.    S.   Zinc   Co.  (Amer.  S.  S.  Co.)  Selhy   S.   &    L.   Co. 

Carbon    C.    &    C.    Co.  Bait.  Cop.  S.  &  R.  Co.  Tacoma    S.    Co. 


Capitalization. 

Stocks —  Authorized.  Outstanding. 

Preferred: 

A.   S.  &  R.    (7%  cum.)    $50,000,000  $50,000,000 

A.  S.  &  S.    (a)     (6%)     17,000,000  17,000,000 

A.  S.  &  S.    (b)     (5%)     30,000,000  30,000,000 

Common 
A.    S.   &   R *66,000,000  50,000.000 

Funded   Debt — Bonds 

A.    S.   &   S 30,000,000  t30.000.000 

A.   S.  &  S.   convertible   6s,   Feb. 

1st.    1926     15,000,000  15,000.000 

•$15,000,000  issued  to  retire  the  A.  S.  &  S.  6  per  cent  con- 
vertible Debentures. 

fOwned  by  the  A.  S.  &  R.  Co. 

Physical  Property. 
These  companies  own  and  operate  mining  properties  In 
Mexico,  Colorado,  Missouri,  California,  Washington,  Utah. 
They  also  own  and  operate  smelting  and  refining  plants 
in  Utah,  Montana,  Nebraska,  Colorado,  Illinois,  New  Jer- 
sey, Mexico,  Arizona  and  elsewhere.  The  principal  mer- 
chantable products  are  bar  gold  and  silver,  pig  lead, 
electrolytic  copper  and  blue  vitrol. 

Earnings. 

Gross  *Net         Interest  and 

Year.  Revenue.         Earnings.        Dividends.        Balance. 

1911     $15,112,125  $10,571,502       $8,020,000        $2,551,502 

1912     16,759,499  11,079,676  8,020,000  3,059,676 

1913t     13,429,993  9,756,540  8,020,000         1,736,540 

•Net  earnings  are  shown  after  deducting  operating  expenses 
and  taxes. 

tReduction  in  earnings  during  1913  due  entirely  to  the  dis- 
turbed conditions  in  Mexico. 

Sources  of  Gross  Revenue. 

Smelting,  Refining,  etc.  Mining  Interest, 

Properties     Rents,  etc. 

1912     $12,568,835  $3,113,105  $1,077,560 

1913      10,926,254  1,185,154  1,318,625 

Dividends. 

05     06      07     08     09      10      11      12      13 
A.  S.  &  R.  common  pet.  ..5%        7  J(4       5       4       4       4       4       4 

Officers. 

Daniel  Guggenheim,  Pres.  Judd  Stewart,  Gen.  Aud.  &  Asst. 

Barton    Sewell,   V.-Pr.  to    Pres. 

Edward   Brush,  V.-P.   &  Asst.  ?.        Frank   W.    Hills,   Comptroller. 

S.   W.    Eccles,   V.-P.  Lucius    A.    Chapin,    Asst.    Treas. 

Edgar   L.   Newhouse,  V.-P.  W.    E.    Merris,    Sec'y. 

Isaac    Guggenheim,   Treas.  F.    R.    Foraker,  Asst.   Gen.   Coun. 

John    N.    Steele,    Gen.    Coun.  &   Asst.   Sec'y. 
R.   P.   Reese,   Auditor. 

The  Armsby  Company  of  New  York, 

New  York,  N.Y. 
The  company  is  engaged  in  packing  and  distributing  at 
wholesale  throughout  the  United  States,  Canada  and  Eu- 
rope, dried  fruits,  canned  fruits,  and  walnuts;  and  in  sell- 
ing at  wholesale  on  a  commission  basis  similar  products 
for  other  smaller  packing  companies.     The  company  han- 
dles the  entire  distribution  in  the  United  States  of  salmon 
canned  by  the  Alaska  Packers'  Assn.,  the  largest  concern 
of  its  kind  in  the  world.    The  company's  central  business 
organization  is  in  San  Francisco.     It  maintains  branches 
in  New  York,  Boston,  Chicago,  and  Los  Angeles. 
Subsidiary   Companies. 
J.  K.  Armsby  Co.   of  Illinois. 

Capitalization. 

Stocks —  Authorized  Outstanding 

Preferred   (7%   cum.)    $500,000  $485,000 

Common    500,000  437,000 

Physical  Property. 

The  company  owns  and  operates  16  plants  for  preparing 
and  packing  its  various  products  at  the  following  points: 
Los  Angeles,  Armona,  San  Jose,  Fresno,  Visalia,  Sulsun, 
Mary8ville,  Sunnyvale,  Stockton,  Healdsburg,  Gilroy, 
Sanger,  Vacaville,  and  Winters,  in  California,  and  at  Van- 
couver, Wash.,  and  Dallas,  Oregon;  also  owns  warehouse 
and  office  building  in  San  Francisco.  The  company  owns 
all  of  the  capital  stock  of  the  J.  K.  Armsby  Company  of 
Illinois  and  a  large  interest  in  the  Central  California  Can- 
neries; also  owns  stock  interests  in  the  Pacific  Coast 
Seeded  Raisin  Co.  and  valuable  trade  mark  rights. 

Earnings. 

Net   Karnlngs  after  all   charges 

1910 $  87.214 

1911 110.098 

1912 172.060 

1913 170,912 

Officers. 


J.  K.  Armsby,  Pres. 
G.  N.  Armsby,  V.  P. 
E.   P.   Sills,  V.   P. 


F.   A,  Aplin,  V.  P. 
A.  W.  Porter,  V.  P. 
A.   M.   Lester,  Sec. 
E.   R.  Armsby,  Treas. 


132 


CORPORATIONS 


Associated  Oil  Co.,  San  Francisco,  Cal. 

The  company  transacts  a  general  business  in  the  ac- 
quiring of  oil  properties,  leasing  of  oil  rights,  producing, 
manufacturing,  refining,  transporting  and  distributing  oil 
In  California  and  throughout  the  United  States  and  terri- 
tories. 

Subsidiary   Companies. 
Associated  Pipe  L.  Co.  Sterling  Oil  &  De.   Co. 

Amalgamated     Oil     Co.  West    Coast    Oil    Co. 

Pioneer       Midway     Oil  Calif.    Coast    Oil   Co. 

Co.  Cons. 

Capitalization. 

Stocks —  Authorized.  Outstanding. 
•Common     j. $40,000,000  $40,000,000 

Funded  Debt —                        \ 
Bonds   i 30,000,000  15,685,000 

•Control  owned  by  Southern  Pacific  Co. 
Physical '  Property. 

Of  the  California  oil  properties  held  in  California,  the 
company  owns  in  fee,  according  to  latest  returns,  36,511 
acres,  and  has  under  leases  (20  years)  2,125  acres.  Min- 
eral locations,  3,200  acres. 

These  properties  are  in  Kern,  Fresno,  San  Luis  Obispo, 
Santa  Barbara,  Contra  Costa  and  Kings  counties.  The 
company  also  owns  refineries,  distributing  plants,  railway 
equipment  and  a  fleet  of  13  vessels.  It  has  selling  agencies 
in  the  principal  cities  of  Nevada,  Arizona,  California  and 
in  Portland  and  Hawaii.  The  company  also  owns  con- 
trolling interest  in  all  the  subsidiary  companies  above 
mentioned  and  stock  interest  in  a  number  of  other  com- 
panies. 

The  company  had  on  hand  Dec.  31,  1913,  8,595,145  bbls. 

of  oil,  an  increase  for  the  year  of  488,529  bbls. 

Earnings. 
Gross  *Net 

Xe,a„r-                        Revenue.       Earnings.  Interest.  Balance 

"1?     $22,385,117      $3,007,902  $    553,688  $   2?454  214 

"!J     ?2'22Z-S84          2,594,933  828  687  1766246 

1912     16,772,618t        2,049,093  818.648  1230  445 

1913    ...17,871,693  2.606,666  784^54  1822412 

•Net  earnings  are  shown  after  deducting  operating  expenses 

and  taxes  and  dep. 

tLoss  is  largely  due  to  change  in  methods  of  accounting. 
Officers. 
Wm.   Sproule,   Pres.  F.  B.  Henderson.  Asst.  Genl.  Mgr. 

L  A   Chanslor,  V.-P.  P.  G.  Williams,  Secretary. 

F.H    Buck,  V.-P.  W.   A.    Sloan, 'Treas. 

J.  R.  Lewis,  V.-P.  C.    L.    Coppage,   Asst.    Sec'y. 

K.  G.  Page,  Assistant  Secretary. 

Booth  Fisheries  Co.,  Chicago. 

The  company  is  engaged  in  buying  and  selling  at  whole- 
sale and  retail  fish,  oysters  and  all  sea  foods,  and  operates 
in  the  Atlantic  and  Pacific  oceans  and  on  the  Great  Lakes. 
Its  distributing  branches  number  more  than  100  which  are 
located  in  the  most  important  cities  of  the  United  States. 

Subsidiary   Companies. 
N.  W.  Fish  Co.  of  Washington.  Booth  C.  S.  Co.  of  Minnesota. 

Booth  C.  S.  Co.  of  111.  U.  S.  &  D.  T.  Co.,  Minnesota. 

Capitalization. 

Stocks—  Authorized.       Outstanding. 

Preferred    (1st    cum.    1%)     $10,000,000  $2,200,000 

Common         10,000,000  5,000,000 

Funded  Debt — ■ 

Bonds 5,000,000  3,520,000 

Bonds  on  cold  storage  plants 187,500 

Physical  Property. 

The  company  owns  its  100  distributing  plants  above  men- 
tioned and  producing  stations  on  the  Great  Lakes  and  the 
North  Pacific  Coast  with  some  minor  stations  on  smaller 
inland  waters.  Four  public  cold  storage  plants  are  owned 
and  the  more  important  stations  are  equipped  with  freez- 
ing plants.  The  company  owns  and  operates  a  line  of 
passenger  and  freight  boats  on  Lake  Superior  and  has 
fishing  fleets  on  the  Great  Lakes  and  Pacific  Ocean.  The 
company  lias  also  obtained  concessions  from  the  Newfound- 
land government.  It  owns  the  entire  capital  stock  of  the 
Northwestern  Fisheries  Co. 

Statistics. 

Sales  1911,  $14,558,432.59  1912.  $16,717,161.58  1913,  $17,554,490.75 

Earnings. 

Gross  *Net 

™a,r-  ,?SvSn"e-      Earnings.       Interest.       Balance. 

1911     $3,849,304         $582,156         $180,091         $402,065 

19J2     4.585,085  703,705  299.735  403,969 

1913 4,806,481  525,238  314,786  210  452 

•Net  earnings  are  shown  after  deducting  operating  expenses 
and  taxes. 

Officers. 

A.    B.    Carpenter     Pres.   &   Treas.        W.  G.  Weil,  Sec'y  &  Asst.  Treas. 
K.  L.  Ames,  V.-P.  W.  F.  Cochran,  Asst.  Sec.  &  Treas. 

California  Delta  Farms,  Inc.,  Los  Angeles,  Cal. 

The  company  operations  consist  of  the  reclamation  by 
levee  construction  and  drainage  of  delta  lands  of  the  San 
Joaquin  River  in  Contra  Costa  and  San  Joaquin  counties; 
placing  reclaimed  land  under  irrigation  by  pumping  sys- 


tems and  the  sale  and  lease  of  such  lands  for  agricultural 
purposes. 

Subsidiary   Companies. 
Holland  Land  &  Water  Co.  Empire  Navigation  Company. 

Capitalization. 

Outstanding 
„t      .  in  Hands 

Stocks —  Authorized         of  Public. 

Common     $7,500,000  $7,500,000 

Funded  Debt — 

Bonds     3,500,000  2,593,000 

Physical  Property. 
The  company  owns  approximately  45,500  acres  of  land 
valued  Dec.  31,  1913,  at  $8,307,425;  its  permanent  improve- 
ments consisting  of  canals,  buildings,  pumping  plants, 
bridges,  telephone  lines,  floodgates,  dry  dock,  wharves  and 
levees  valued  at  $1,129,206;  12  dredges  and  other  machin- 
ery and  equipment  valued  at  $360,481.  Mortgages  held  by 
the  company  aggregate  $484,081;  its  rent  role  from  lands 
leased  total  $328,231.70  for  1914. 

Earnings. 
Gross  *Net 

7???-  Revenue.  Earnings.  Interest.        Balance. 

1913     $545,993  $419,367  $80,562  $338,805 

•Net  earnings  are  shown  after  deducting  operating  expenses 
and   taxes. 

Officers. 
Lee   A.    Phillips,    Pres.  Geo.  A.   Atherton,  Gen'l  Mngr. 

Isaac    Milbank,   V.-P.  Howard  S.  Dudley,  Sec'y  &  Treas. 

John    B.    Miller,    V.-P.  Geo.   M.    Burton,  Ass't    Sec'y. 

California  Fruit  Canners,  San  Francisco,  Cal. 

The  company  is  engaged  in  canning  and  preserving  of 
fruits  and  vegetables  throughout  California,  and  in  the  sale 
and  distribution  of  their  products. 

Capitalization. 
Stocks —  Authorized  Outstanding 

Common     $3,500,000  $3,000,000 

Physical  Property. 
Owns  and  operates  about  75  per  cent  of  the  vegetable 
and  fruit  canneries  in  the  state  of  California.  The  com- 
pany owns  interests  in  a  number  of  other  companies 
similarly  engaged.  Valuation  of  such  holdings,  together 
with  real  estate,  machinery  and  operating  plants  was 
$3,192,260  as  of  February  28,  1914. 

Earnings. 

Surplus  and 

Contingent 

Year  Net  Earnings  Div.     Reserve  Fund 

1910     $381,175  $208,195  $1,407,936 

1911     416,725  208,195  1,506,359 

1912     603,025  208,195  1,700,029 

1913     739,261  208,195  1,992,862 

1914     603,051  333,545  2,129,136 

Dividends. 

Every  year  since  1900  at  the  rate  of  7.20  per  cent  annu- 
ally. Dividend  paid  monthly  except  for  7  months,  May  to 
November,  1906. 

Officers. 

William  Fries,  Pres.  R.    I.    Bentley,    V.-P.   &   Gl.    Mgr. 

S.    L.    Goldstein,    V.-P.    &    Treas.        Francis    Cutting,    Vice-Pres. 
Chas.    B.    Carr,   Sec. 

California  Oregon  Power  Company, 

San  Francisco,  Cal. 
The  company  furnishes  electric  light  and  power  to  the 
territory  extending  from  Castilla,  Cal.,  on  the  south  to 
Glendale  in  Oregon  on  the  north;  east  to  Klamath  Falls  in 
Oregon,  and  west  to  Etna  in  California.  It  also  furnishes 
water  to  two  communities.  Thirty-three  cities  and  towns 
in  northern  California  and  southern  Oregon  are  served  by 
this  company.  Its  primary  lines  extend  over  400  miles, 
through  Shasta-Scott-Butte  Valleys  in  California  and 
Klamath-Rogue  River  Valleys  in   Oregon. 

Subsidiary   Companies. 

Rogue    R.     Elect.     Co.  Sisk.   E.   Pr.   &  L.   Co.  Klamath    Power    Co.     1 

Capitalization. 

Stocks —  Authorized.  Outstanding. 
Common     $10,000,000  $10,000,000 

Funded  Debt — 

Bonds     10.000,000  5,600,000 

Physical  Property. 

The  company  owns  and  operates  7  hydro-electric  plants 

with  an  aggregate  development  of  71,250  hp.  and  a  possible 

development  of  160,000  hp.;  also  400  miles  of  high  tension 

transmission  lines  and  the  water  works  at  Klamath  Falls, 

Ore.,  and  Dunsmuir,  Cal. 

Officers. 


J.  W.  Churchill,  Pres. 
J.    D.    McKee,    V.-P. 


J.   P.   Churchill,  Treas. 
A.    J.     Rosborough,    Sec'y. 


California  Wine  Association,  Winehaven,  Cat. 

The  operations  of  the  company  consist  of  the  growing 
and  making  of  wines  and  brandies  and  the  sale  and  dis- 
tribution of  these  products. 


CORPORATIONS 


133 


Capitalization. 

Stocks —  Authorized.       Outstanding. 

Preferred  (6%  cum.)    $   7.000,000*  $1,426,260 

Common     13,000,000*  4,754,200 

Funded   Debt — 

Bonds    7,000,000  4.495,000 

•$5,000,000  each  of  pref.  and  com.  authorized  in  1913  to 
provide  for  convertible  feature  of  debentures. 

Physical    Property. 

The  company  owns  approximately  50  parcels  of  real  es- 
tate in  14  counties  of  California,  wineries,  distributing 
plants,  etc.,  valued  at  $1,731,392*  with  an  approximate 
annual  production  capacity  of  20,000,000  gals.  It  also 
owns  interests  in  the  capital  stock  of  other  companies 
similarly  engaged  amounting  to  $7,128,048*.  Stock  Inven- 
tory of  wines,  etc.,  $3,250,605.* 

•As  of  December  31st,  1913. 

Officers. 

n.    R.    Kittredge,    Pres.  I.  Frowenfeld,  2nd  V.-P.  &  Treas. 

C   O.   G.   Miller,    1st   V.-P.  W.  Hanson,  V.-P.,  Sec.  Gn'l  Mngr. 

J.  A  O.  Covik.  Ass't  Sec'y. 

Coast  Counties  Gas  &  Electric  Co.,Sem  Francisco. 
The  company  furnishes  electric  light  and  power  and  gas 
in  Santa  Cruz,  San  Benito  and  Santa  Clara  counties,  Cal. 
The  company  purchases  a  part  of  its  power  from  the 
Pacfiic  Gas  &  Electric  under  a  long  term  contract;  also 
operates  the  electric  railways  in  Santa  Cruz  and  vicinity. 

Subsidiary  Companies. 

Coast  Co.  L.  &  Pr.  Co.  Union    Traction    Co.     Big  Creek  Lt.  &  Pr.  Co. 

S.  Benito  L.  &  Pr.  Co. 

Capitalization. 

Stocks —  Authorized.  Outstanding. 

Preferred   (6%   cum) $2,000,000         $1,000,000 

Common     2,000,000  1,000,000 

Funded  Debt — 
Bonds     1,839,000  1,580,000 

Physical  Property. 
The  company  owns  and  operates  one  hydro-electric  and 
2  steam  plants  with  a  combined  development  of  3,346  hp.; 
75  miles  of  transmission  lines  and  531  miles  of  distribut- 
ing lines,  6  substations;  owns  gas  plants  at  Santa  Cruz, 
Watsonville,  Hollister  and  Gilroy;  the  Union  Traction  Co. 
operates  18  miles  of  standard  gauge  track  in  Santa  Cruz 
and  thence  to  Capitolia.  The  company's  municipal  fran- 
chises are  perpetual — county  franchises  on  highways  run 
until  1946-1959.  The  Company  owns  all  the  capital  stock 
of  its  subsidiary  companies,  except  the  Union  Traction 
company,  which  it  controls. 

Statistics. 
Consumers    Served. 
Year.  Gas. 

1909    1,912 

1910    2.017 

1911     2.725 

1912    3.161 

1913    3.281 

Earnings. 
tGross         *Net 
Revenue.  Earnings.  Interest.     Balance. 

1909     $209,989     $87,130     $57,575     $29,555 

1910     252,104  113,037  63.560  49,477 

1911     289,115  143,134  69.560  73,574 

1912     319,940  161,032  72,560  78,543 

1913     356,508  143,174  78,543  64,631 

tGross    earnings    include    profit  from    Union    Traction    Co. 

operations.      Deficit   In   1913. 

•Net  earnings  are  shown  after  deducting  operating  expenses 
and  taxes. 

Officers. 

S.  W.  Coleman,  Pres.  &  Gen.  Mgr.  R.  M.  Hotaling,  Vice  President. 

L.  W.  Pryor,  Secretary  and  Treasurer. 

Coast  Valleys  Gas  and  Electric  Co., 

San  Francisco,  Cal. 

The  Company  owns  and  operates  the  electric  business 
in  Salinas,  Monterey,  Pacific  Grove  and  King  City;  the 
gas  business  in  Salinas,  Monterey  and  Pacific  Grove;  the 
water  business  in  Salinas  and  King  City;  together  with 
an  electric  distribution  system  for  power  and  lighting 
service  in  the  Salinas  Valley  between  Salinas  and  King 
City. 

Capitalization. 

Stocks —  Authorized      Outstanding 

•Preferred    (7%)     $2,000,000  $2,000,000 

•Common 3,000,000  3,000,000 

Bonds   10,000,000  900,000 

•The   stock   of    this    company    is    controlled   by    the    United 
Rys.  Inv.  Co.  through  the  Cal.  Ry.  &  Power  Co. 
Physical   Property. 

All  power  is  purchased  from  Sierra  &  San  Francisco 
Power  Company,  but  the  Company  owns  three  steam  sta- 
tions having  total  capacity  of  1,375  K.  W.  The  Company 
also  owns  65  miles  of  high  tension  transmission  line,  8 
sub-stations  aggregating  5,100  K.  W.,  and  210  miles  of  dis- 


Electric. 

Total 

3,095 

5,007 

3,539 

5,556 

4.«27 

7,352 

4,863 

8,023 

5,530 

8,811 

tribution  system.  The  gas  plants  at  Salinas  and  Mon 
terey  have,  respectively  400,000  and  500,000  cubic  feet  daily 
capacity.  Gas  is  distributed  through  3  miles  of  high  pres- 
sure and  39  miles  of  low  pressure  mains. 

Earnings. 
Gross  'Net 

Y„e,a,r  £ev,e„n„u/!        Earnings  Interest        Balance 

1913. $227,704  $94,503  $59,813  $34,690 

•Net  earnings  are  shown  after  deducting  operating  expenses 
and  taxes. 


Officers. 


C.  N.  Black.  Pres. 

G.  W.  Bacon,  Vice-Pres. 


H.  F.  Jackson,  V.-P.  &  Gen'l  Mgr. 
F.  J.  Blanchard,  Sec'y  and  Treas 


General  Petroleum  Co.,  Los  Angeles,  Cal 

The  company  owns,  leases,  and  develops  oil  lands  and 
constructs  and  operates  pipe  lines,  refineries,  distributing 
plants  and  equipment,  etc.,  and  buys  and  sells  oil  and  its 
products. 

Subsidiary  Companies. 
Trumble    Refining    Co.  General  Pipe  Line  Co.  of  Calif. 

Capitalization. 

Stocks —                                                  Authorized.  Outstanding 

Common     $50,000,000  $34,814,600 

Funded  Debt — 

Bonds     25,000,000  12,477,300 

Conv.  serial  2  yr.  notes,  1915 3,000,000  2,868,000 

Physical  Property. 
The  company  owns  23,644  acres  of  oil  lands  in  Cal- 
ifornia, and  24,500  in  Mexico;  tanks  with  combined  ca- 
pacity of  2,512,800  barrels;  3  refineries  with  daily  capacity 
35,000  bbls.  Owns  73%  of  stock  General  Pipe  Line  Co.  of 
California  and  controlling  interest  in  Trumble  Refining  Co. 
Officers. 


Virgil  F.  Shaw,  Ass't  Sec'y. 
B.  C.  Donham,  Ass't  Sec'y. 
Robert  Mitchell,  Treas. 


Authorized      Outstanding 
$   6,000.000 


John   Barneson,    Pres. 
Jas.   T.    Currie,    1st  V.-P. 
Wm.    Weir,    2nd    V.-P. 
C.     R.     Stevens,    Sec'y. 

Great  Western  Power  Co.  of  California, 

San  Francisco,  Cal. 
The  company  furnishes  electric  light  and  power  to  a 
territory  including  11  counties  In  California,  and  having  a 
total  area  of  8,600  square  miles. 

Subsidiary  Companies. 
California  Electric  Generating  Co.       City   Electric  Co. 

Capitalization. 
•Stock—  At 

West.  Power  Co.  of  N.  J.,  pref.  6%..$  6,000,000 

West.  Power  Co.  of  N.  J.,  com 14,670,000  14,670,000 

Funded  Debt — 

Bonds,  Gt.  West.  Power  Co.  and  sub- 
sidiaries         35,000,000  23,645,000 

West.  Power  Co.  of  N.  J.,  notes  coll.  . „„_ 

tr.  6s,  due  1915 1,250,000  1,250,000 

•The  stock  of  the  Great  Western  Power  Co.  is  all  owned 

by  the  Western  Power  Co.  of  New  Jersey.     The  latter  has  no 

bonded  indebtedness. 

Physical  Property. 
The  company  owns  at  Big  Bend,  California,  18  miles 
above  Oroville  and  154  miles  northwest  of  San  Francisco, 
a  hydro-electric  plant  with  a  capacity  of  55,000  H.  P.  its 
power  being  transmitted  to  Oakland  over  two  circuits  to 
sub-stations  at  Sacramento,  Brighton,  Cowell  and  Oakland, 
each  sub-station  supplying  customers  within  a  radius  of 
25  miles;  a  reservoir  of  82,000,000,000  gallons  capacity 
at  Big  Meadows,  which,  with  the  falls  on  the  north  fork  of 
the  Feather  River,  with  an  ultimate  possible  development 
of  550,000  H.  P.;  also  owns  a  steam  electric  power  station 
in  Oakland,  developing  15,000  H.  P.  and  a  steam  power 
station  at  North  Beach,  San  Francisco,  developing  28,000 
H.  P.  Power  is  transmitted  from  Big  Bend  station  over 
double  circuit  steel  tower  line  to  Oakland  and  thence  by 
cable  to  San  Francisco. 


Customers  served 


Statistics. 

1912 
4,228 


1914 
16,010 


Increase  %  Inc. 
10,782         255 


Gross 
Revenue 
and  other 
Year  Income 

1910    $    928,786 

1911    1.938.158 

1912    2.313,699 

1913    2,930,068 


Earnings. 


•Net 

Earnings 

$     646.122 

1,179,352 

1.303.216 

1,964.099 


Interest  Balance 

$    592,828  $  53,294 

842,267  337,885 

1,017,572  285,644 

1,183.751  780,348 


•Net  earnings  are  shown  after  deducting  operating  expenses 
and  taxes. 

Officers. 
Mortimer  Fleishliacker,  Pres.  Frank  M.  Tompkins.  Treas. 

Guy  C.  Earl.  Vice-Pres.  Harley  P.  Wilson,  Sec. 

Herbert    Fleishhacker,    Vice-Pres.      William  H.   Spaulding,  Assl :  Sec. 
Harley  P.  Wilson,  Vice-Pres.  Charles  E.  Maynard,  Asst.  Treas. 


134 


CORPORATIONS 


Great  Western  Power  Company's  storage  reservoir  (Lake  Almanor)  on  the  North  Fork  of  the  Feather  River,  Plumas  County,  California — 
the  largest  artificial  reservoir  in  the  State  of  California.  The  lake  is  over  10  miles  in  length,  has  an  area  of  30  square  miles  and  contains 
82,000,000,000  gallons  of  water,  at  an  elevation  of  4,450  feet  above  sea- level.  The  equalized  river  flow  resulting  from  this  vast  storage  reservoir 
is  utilized  at  the  Big  Bend  Power  House  where  is  generated  75,000  continuous  electrical  horsepower. 

Great  Western  Power  Company  System  of  California 


The  Great  Western  Power  Company  of  California 
had  its  origin  in  the  year  1901,  in  the  study  of  water 
power  possibilities  covering  the  northern  half  of  the 
State  of  California.  This  study  resulted  in  the  elimi- 
nation of  those  possibilities  which  were  either  ex- 
pensive or  unreliable  and  in  the  discovery  of  the  great 
water  supply  of  the  North  Fork  of  the  Feather  River, 
the  unusually  large  natural  underground  storage  in 
its  water-shed,  and  the  vast  storage  site  known  as  the 
Big  Meadows.  In  connection  with  the  great  storage 
facility  was  the  possibility  of  dropping  this  equalized 
water  within  a  reasonably  short  section  of  river,  in- 
cluding the  famous  Big  Bend,  through  a  total  vertical 
head  of  4,000  feet. 

The  result  of  this  extensive  survey  was  presented 
to  a  group  of  capitalists  and  shortly  afterward  land 
was  purchased  for  reservoir  sites,  water  rights  were 
acquired,  and  the  original  Western  Power  Company 
of  California  was  organized  in  the  spring  of  1901.  To 
this  company  all  land  and  water  rights  acquired  were 
conveyed. 

In  September,  1906,  the  Great  Western  Power  Com- 
pany of  California,  the  present  operating  company, 
was  organized,  and  acquired  all  of  the  physical  prop- 
erties of  the  former  company.  At  the  same  time  the 
Western  Power  Company  of  New  Jersey,  a  holding 
company,  was  formed,  which  acquired  and  now  holds 
all  of  the  stock  (except  qualifying  directors'  shares) 
of  the  Great  Western  Power  Company  of  California. 
This  is  a  non-operating  company  and  has  no  bonded 
debt.  Development  of  the  property  was  at  once  begun, 
and  in  December,  1908,  the  initial  development  at  Big 
Bend,  of  60,000  horsepower,  was  placed  in  operation. 
Shortly  afterward  the  California  Electric  Generating 
Company  erected  a  15,000  horsepower  auxiliary  steam 
plant  at  the  Oakland  terminal  of  the  hydroelectric 
transmission  line,  which  plant  is  now  leased  to  the 
Great  Western  Power  Company.  In  July,  1911,  the 
City  Electric  Company,  comprising  a  28,000  horse- 
power steam  plant  and  an  extensive  distribution 
system  in  San  Francisco,  was  acquired. 

An  extension  of  the  Big  Bend  plant  of  60,000 
horsepower  has  since  been  under  way  and  is  partially 
completed,  making  the  present  capacity  of  this  station 
75,000  horsepower.  The  present  installed  generating 
capacity  of  the  system  is  therefore  118,000  horsepower. 


The  Big  Meadows  dam  has  recently  been  com- 
pleted to  a  height  of  eighty  feet.  The  Great  Lake 
Almanor,  formed  by  the  waters  impounded  by  this 
dam,  is  already  over  ten  miles  in  length  and  covers 
thirty  square  miles  of  territory.  In  this  vast  reservoir, 
which  is  at  an  elevation  of  4,450  feet  above  sea  level, 
there  are  at  present  eighty-two  billion  gallons  of  water, 
a  sufficient  supply  to  equalize  the  river  flow  so  as  to 
generate  continuously  at  the  present  Big  Bend  plant, 
even  through  the  driest  years,  75,000  horsepower. 
This  same  water  can  further  be  used  at  the  four  other 
power  sites  controlled  by  the  company,  where  it  will 
generate  240,000  additional  horsepower. 

Power  from  the  Big  Bend  station  is  transmitted 
over  a  double  circuit  steel  tower  transmission  line, 
operating  at  one  hundred  thousand  volts,  and  which  is 
one  hundred  and  fifty-four  miles  in  length,  extending 
through  the  fertile  Sacramento  Valley  to  the  many 
substations  in  eleven  counties  and  to  the  Oakland 
terminal  station,  which  supplies  the  territory  con- 
tiguous to  San  Francisco.  Hydroelectric  power  is 
transmitted  from  the  Oakland  terminal  of  this  trans- 
mission line  through  the  agency  of  two  11,000-volt 
submarine  cables  (the  largest  of  their  kind  in  the 
world)  under  San  Francisco  Bay  to  the  city  of  San 
Francisco.  Through  the  aid  of  eight  hundred  miles 
of  distributing  lines  and  thirteen  substations,  the  com- 
pany is  now  serving  the  needs  of  sixteen  thousand 
consumers,  having  a  connected  load  of  165,000  horse- 
power, in  eleven  counties  in  the  central  portion  of  the 
state. 

The  Big  Meadows  dam  will  be  even  further  en- 
larged and  will  ultimately  impound  1,250,000  acre  feet 
of  water,  forming  an  artificial  lake  larger  than  any  yet 
constructed.  The  final  development  of  this  water- 
shed will  ultimately  avail  550,000  continuous  horse- 
power, and  the  stored  water,  after  passing  through 
the  five  powerhouses  (falling  through  a  vertical  drop 
of  4,000  feet)  will  afford  irrigation  for  over  one-half 
million  acres  of  land  in  the  great  Sacramento 
Valley. 

This  hydroelectric  power  project  is  one  of  the 
largest  and  most  economical  of  development  in  the 
United  States,  and  is  particularly  valuable  in  view 
of  the  great  demand  for  electric  service  in  this  com- 
munity. Adv. 

Attention  is  called  to  the 
announcement  on  fage  II 


CORPORATIONS 


135 


The  Holt  Manufacturing  Company,    Stockton,  Cal. 

This  company  manufactures  and  sell  patented  machinery, 
consisting  of  Gas  Tractors,  Combined  Harvesters,  Plows 
and  Harrows,  together  with  the  necessary  supplies  and 
lubricants.  All  these  goods  are  sold  under  their  registered 
trade  mark  CATERPILLAR.  Its  products  are  protected 
by  patents  in  the  United  States,  England,  France,  Germany, 
Australia,  South  America,  and  all  principal  foreign  coun- 
tries. The  trade  mark  CATERPILLAR,  together  with  its 
equivalent  in  the  principal  foreign  languages,  has  been 
registered  in  practically  every  country  in  the  world. 

In  1913  a  consolidation  was  effected  by  which  all  sub- 
sidiary companies  were  absorbed  and  became  a  part  of 
the  parent  company. 

Capitalization. 

Stocks —  Authorized         Outstanding 

Preferred  (7%) $1,000,000  1603,000 

Common    500,000  500,000 

Physical   Property. 

The  company  owns  and  operates  two  factories,  one  at 
Stockton,  Cal.,  employing  about  seven  hundred  and  fifty 
men,  and  one  at  Peoria,  111.,  employing  about  two  hundred 
men. 

The  Stockton  plant  manufactures  tractors,  plows  and 
harvesting  machinery,  and  its  products  are  shipped  all 
over  the  Pacific  Coast,  including  Alaska  and  the  west 
coast  of  South  America;  also  the  Pacific  Islands,  China, 
Australia,  and  New  Zealand. 

The  Peoria  factory,  which  is  devoted  exclusively  to  the 
manufacture  of  CATERPILLAR  tractors,  supplies  the  trade 
east  of  the  Rocky  Mountains,  the  eastern  part  of  South 
America,  and  the  European  trade. 

The  company  sells  direct  to  the  consumer,  and  it  has 
twelve  American  branches  and  district  sales  agents.  Four- 
teen foreign  agencies  handle  the  trade  abroad. 

Its  real  estate,  buildings,  machinery  equipment,  etc.,  was 
appraised  as  of  December  31,  1913,  at  $1,161,398.  This 
amount  allowed  a  reserve  for  depreciation  of  $259,418.09. 
Stock  on  hand  at  the  same  date  was  $1,486,916. 


Statistics. 


Sal 
Year 


R.T 
II.   M 


es — 

1903 $    787.815 

1904 614,264 

1905 784,170 

1906 1,027,544 

1907 1,046,948 

1908 1,058,726 

Officers. 

Holt,  Pres. 
Springer,  V.   P. 
.  "Baker,  V.  P. 


P.  E.  Holt,  V.  P.  &  Gi.   Man. 


Year  1909 $1,365,889 

"      1910 1,737.532 

"      1911 2,245,799 

"      1912 2,262,489 

"      1913 2,874,044 


C.   Parker  Holt,  Treas. 

P.   Ehrenfeldt,  Sec'y  &  Auditor. 

C.  L.  Xeumiller,  Gen'l  Counsel. 


Home  Telephone  Co.  Los  Angeles,  Cal. 

The  company  operates  an  independent  telephone  sys- 
tem covering  Los  Angeles,  South  Pasadena  and  Hunting- 
ton Park.  Its  lines  connect  with  other  independent  sys- 
tems in  southern  California  through  the  U.  S.  Long  Dis- 
tance Tel.  &  Tel.  system. 

Capitalization 

Stocks— Authorized  Outstanding 

Preferred   (5%)    $3,000,000  $3,000,000 

Common    3,000,000  3,000,000 

Funded  Debt — 

Bonds   7,500,000  4.318,000 

Physical   Property. 

The  company  owns  and  operates  an  extensive  system 
of  exchanges  and  connections  in  the  territory  which  it 
covers  and  is  in  active  competition  with  the  Pacific  Tel. 
&  Tel.  Co.  in  that  territory. 

Earnings. 

Gross  *Net 

Year  Revenue         Earnings 

1910    $1,079,261  $543,579 

1911     1,293,365  556.140 

1912    1,514.501  707,894 

1913     1,720,499  690,430 


Interest  Balance 

$241,650  $301,929 

244.021  313.119 

247.247  460,647 

440,480  515,176 


■Net  earnings  are  shown  after  deducting  operating  expenses 
and  taxes. 

Officer* 

A.   R.   Cass,  Pres.  E.  P.  Murphy,  Sec'y. 

K.   J.    Marshall,   Vice-President.  M.   H.   Hellman,  Treas. 

F.  W.   Rea,  Asst.  Treas. 

Los  Angeles  Gas  and  Electric  Corp., 

Los  Angeles,  Cal. 
This  company  operates  a  complete  equipment  for  the 
manufacture  and  distribution  of  gas  in  Los  Angeles,  Pasa- 
dena, South  Pasadena,  Alhambra,  San  Gabriel,  San  Marino, 
Watts,  Eagle  Rock,  Huntington  Park,  Inglewood,  and  other 
suburban  districts  of  the  City  of  Los  Angeles.    The  com- 


pany controls  85%  of  the  gas  business  in  the  City  of  Los 
Angeles  and  all  of  the  gas  business  in  the  other  cities  above 
named,  serving  an  approximate  population  of  570,000.  It 
also  operates  a  plant  for  the  distribution  of  electric  light 
and  power  in  the  City  of  Los  Angeles. 
Capitalization. 

Stocks —  Authorized.       Outstanding. 

1st  preferred   $  4,000,000  None. 

2nd  preferred 6,000.000  None. 

Common     20,000,000        $10,000,000* 

Funded  Debt — 
Bonds   15,000,000  8.686,000 

•The  capital  stock  of  this  company  is  owned  by  the  Pacific 
Lighting    Corporation,    San    Francisco,    California. 
Physical    Property. 

The  rated  capacity  of  the  gas  generating  plant,  owned 
and  operated  by  the  company,  is  31,140,000  cu.  ft  The 
holder  capacity  is  14,950,377  cu.  ft.  The  company  owns 
1,247  miles  of  gas  mains  and  on  July  1st,  1914  had  out- 
standing 124,055  meters.  The  rated  capacity  of  the  electric 
plant,  owned  and  operated  by  the  company,  is  25,650  H.  P.; 
miles  of  overhead  main  wire,  2,410;  underground  conduits, 
21  miles.  On  July  1st,  1914,  the  company  had  outstanding 
37,166  electric  meters;  with  a  total  connected  load  of  67,- 
021  H.  P.  The  value  of  physical  property  of  the  corporation 
without  allowing  for  good  will  and  franchise,  $20,600,000. 
Statistics. 

Comparative   statement  of  Meters  Installed. 

January  1st,  1910         1911         1912         1913  1914 

Gas     74,353      84,773     96,108      107,952  122,020 

Electric     20,844      24,130     27.295        31,324        36,086 

Totals     95,197   108.903  123,403      139,276     158,106 

Earnings. 

Gross  *Net 

Year.  Revenue.        Earnings.         Interest.         Balance. 

1910     $3,334,861        $1,236,563  $260,507        $    976,056 

1911     3,893,189  1,552,479  328,934  1,223.545 

1912     4,178,176  1,842.964  396,405  1,446,559 

1913     4,527,164  1.937,570  400,943  1,536,627 

•Net  earnings  are  shown  after  deducting  operating  expenses 

and  taxes. 

Officers. 

W.  B.  Cline,  Pres.  &  Gen'l.  Mgr.C.    S.    Vance,   3rd   V.-P. 
Wm.    Baurhyte,   V.-P.  R.    M.    Adams,   Sec'y.   &  Treas. 

C.   P.   Houghton,  2nd   V.-P.  T.   P.   McCrea,  Ass't.  Sec'y. 

Horace  Cline,  Ass't.  Treas. 

Los  Angeles  Railway  Corp.,  Los  Angeles,  Cal. 

The  company  operates  the  entire  street  railway  system 
in  the  city  of  Los  Angeles  and  in  the  adjacent  territory 
which  includes  5  other  towns.  The  present  population  of 
the  territory  served  is  estimated  at  516,000  with  an  aver- 
age annual  increase  of  15  %.  The  company  does  not  oper- 
ate generating  plants  but  purchases  its  power  from  the 
Pacific  Light  &  Power. 

Subsidiary  Companies. 
City  Railway  of  Los  Angeles. 

Capitalization. 

Stocks —  Authorized.         Outstanding. 

"Common     $20,000,000  $20,000,000 

Funded  Debt — Bonds   25,500,000  20,000.000 

"Owned  by   Mr.   H.  E.   Huntington. 

Physical    Property. 

The  company  owns  357.88  miles  of  track  and  operates 

385.82  miles,  of  which  85.15  miles  is  over  private  right  of 

way;  875  cars,  of  which  601  are  PAYE  Xype;  321  miles  of 

transmission  lines  and  10  sub-stations.    The  company  also 

owns  all   the  capital  stock  of  the   City   Ry.   Co.  of   Los 

Angeles.     82%   of  the  company's   franchises  run   beyond 

1940. 

Statistics. 

Miles  of  Road     Cars  Passengers 

Gross  Income.       Operated.  Operated.  Carried. 

1900    $     835.627                     74.86  110  17,874,308 

1911    6,843.377                   360  800  117,731,241 

1912    6,616,924                   363  800  135,658,571 

1913    7,005,433                   375  875  145.437.439 

Earnings. 

Gross  'Net 

Revenue.  Earnings.  Interest.  Balance. 

1911     $5,817,561  $1,693,676  $1,002,500  $    691,176 

1912     6,542,468  2.207.059  1.002,500  1,204,559 

1913     7,005,945  2.306,931  1,002,500  1,304,431 

•After  deducting  operating  expenses  and  taxes. 

Officers. 

H.  E.  Huntington,  President.  C.  A.  Henderson,  Sec.  and  Treas. 

Howard  Huntington,  Vice-President  and  General  Manager. 

Montana  Power  Co.,  New  York. 

The  company  owns  and  operates  electric  power  and 
lighting  plants  in  the  territory  extending  from  the  west- 
ern boundary  of  Montana,  540  miles  to  Billings,  and  from 
the  southern  border  of  the  state  to  within  a  few  miles  of 
the  Canadian  boundary,  embracing  the  state's  most  pro- 
ductive territory  and  including  nearly  all  of  Its  Important 
cities  and  towns.    The  company  furnishes  electric  power 


136 


CORPORATIONS 


and  light  to  51  cities  and  towns  and  sells  power  to  the 
lighting  and  traction  lines  of  Helena  and  to  the  electric 
railways  of  Butte;  also  sells  power  for  mining  and  smelt- 
ing operations.  The  company  operates  irrigation  systems 
of  both  the  gravity  and  pumping  type. 

Subsidiary   Companies. 

Great   Falls  Power  Co.  Montana  Power  Transmission  Co. 

Thompson    Falls    Power   Co.  Montana   Res.   &  Irrigation   Co. 

Capitalization. 

Stocks —  Rate  Authorized.  Outstanding 

Preferred    (7    per    cent    cum.) $25,000,000  *$   9,700,000 

Common      75,000,000  t  49,557,600 

Funded  Debt — 
Bonds     75,000,000  24,938,000 

•$28,200   in    treasury  of   Great   Falls   Power  Co. 

t$22, 500,000  under  voting  trust  with  dividend  deferred.  Of 
the  remainder  $225,800  in  treasury  of  Great  Falls  Power  Co. 

Physical    Property. 

The  total  present  capacity  of  all  plants  controlled  by 
the  company  is  102,000  H.  P.  The  present  output  reaches 
a  maximum  of  86,000  H.  P.  with  an  average  of  62,000  H.  P. 
The  estimated  ultimate  development  of  water  power  sites 
undeveloped  and  under  construction  is  253,000  H.  P.,  of 
which  it  is  expected  that  160,000  H.  P.  will  have  been  de- 
veloped by  1918.  The  total  then  developed  will  be  262,000 
H.  P.,  and  the  grand  total,  developed  and  undeveloped, 
355,000  H.  P.  The  company  owns  all  of  the  capital  stock 
of  the  subsidiaries  above  mentioned. 

The  Great  Falls  Power  Company  and  Thompson  Falls 
Power  Company  have  entered  into  contracts  with  the 
Chicago,  Milwaukee  &  Puget  Sound  Ry.  Co.  for  electrical 
power  to  operate  about  450  miles  of  its  main  transconti- 
nental line.  Under  these  contracts,  which  cover  a  period 
of  99  years  and  go  into  effect  on  or  before  Jan.  1st,  1918, 
the  railway  company  is  bound  to  take  and  pay  for  20,000 
kilowatts  (26,500  H.  P.),  and  it  has  taken  an  option  on 
additional  power  to  the  extent  of  30,000  kilowatts  (about 
40,000  H.  P.),  which  option  must  be  exercised,  Vz  in  five 
years  and  %  in  ten  years,  but  not  less  than  %  of  the 
amount  under  option  must  be  taken,  if  any. 
Earnings. 

Gross  *Net 

Year.  Revenue.  Earnings.  Interest.         Balance. 

1912    $3,029,875  $1,991,469  $786,510         $1,204,959 

1913     3,359,198  2,421,424  904,555  1,516,869 

•Net  earnings  are  shown  after  deducting  operating  expenses 

and   taxes. 

Dividends. 

January,  1913,  to  date  quarterly  dividends  of  \%%  on  the 
preferred  and   %%   on   the  common  have  been  paid. 

Officers 

John    R.    Ryan,    Pres.  Frederick    Strauss,    V.-P. 

Max    Hebgen,    V.-P.  C.    R.    McCabe,   V.-P. 

Alfred  Jaretski,   V.-P.  Walter    Button,    Sec'y    &    Treas. 

Mt.  Whitney  Power  &  Electric  Co.,  Visalia,  Cal. 
The  company  furnishes  electric  light  and  power  to  a 
territory  composed  of  all  of  Tulare  Co.  and  a  part  of  Kern 
Co.,  Cal.,  including  the  towns  of  Visalia,  Tulare,  Porters- 
ville,  Lindsay  and  Exter. 

Capitalization. 

Stocks —                                                        Authorized  Outstanding 

Preferred     ....$1,800,000  $    750,000 

Common      3,200,000  1,875,000 

Funded  Debt — 

Bonds    5,000,000  2,477,000 

Physical  Property. 
The  company  owns  and  operates  5  hydro-electric  stations 
on  the  Kaweah  and  Tule  Rivers  and  a  storage  reservoir 
with  130,000,000  cubic  feet  capacity;  a  steam  turbine 
generator  plant  at  Visalia  developing  10,000  h.  p.;  178 
miles  of  high  tension  transmission  and  823  miles  distribut- 
ing lines. 

Earnings. 
Gross  'Net 

Year  Revenue       Earnings         Interest  Balance 

1910     $356,148  $193,332  $121,976  $71,356 

1911     413,628  232,620  105,124  127,496 

1912     451,862  233,074  119,613  113,451 

1913     592,882  336,425  138,201  198,224 

•Net  earnings  are  shown  after  deducting  operating  expenses 

and  taxes. 

Officers. 

John    Coffee   Hays,   Pres.  E.    E.    Baker,   Sec. 

B.  .  M.    Maddox,   Vice-Pres.  Patrick    Longan,    Treas. 

Harris   Hammond,  Vice-Pres.  R.   D.   Hanna,  Asst.   Sec. 

National  Ice  &  Cold  Storage  Company  of  Cali- 
fornia, &an  Francisco,  Cal. 

The  company  harvests  natural  ice  in  the  Sierra  Nevada 
Mountains,  manufactures  artificial  ice  in  various  factories 
located  in  the  principal  cities  of  California  and  does  a 
diversified  business  in  storage  of  all  classes  of  meats,  poul- 
try, fruits  and  vegetables,  car  icing,  and  the  sale  of  ice  for 


wholesale  and  retail  consumption  throughout  a  territory 
embracing  practically  the  entire  state  of  California. 

Subsidiary   Companies. 
Pacific  I.   &  C.   S.   Co.  Tahoe    Ice    Company.     Sonora  Ice  &  C.  S.  Co. 
California    Ice    Co.  Mt.    Ice    Co.    of   Cal.       South.    Calif.    Ice    Co. 

Petal  a  I.   &  C.  S.  Co.  Flot  iston    Ice    Co.  Dist.    I.    &    C.    S.    Co. 

Marys  le  I.  &  C.  S.  Co.  S.  Pablo  I.  &  C.  S.  Co.  Cone    I.    &    C.    S.    Co. 
Stock.    I.    &   C.   S.    Co.  Fresno    Con.    Ice    Co.  San  J.   I.  &  C.   S.   Co. 
Watson.  I.  &  C.  S.  Co.  Con.    Ice   &   C.    S.   Co.  Valley    Ice    Co. 
Oakland  I.  &  C.  S.  Co. 

Capitalization. 

Stocks—  Authorized.        Outstanding. 

Preferred    (7%    cum.)    $   5,000,000  $       200,000 

Common     15,000,000  15,000,000 

Funded  Debt — 

Bonds     15,000,000  3,530,000 

Physical   Property. 

The  company  owns  and  operates  four  natural  ice  plants 
located  at  Floriston,  Iceland,  and  Polaris,  Cal.,  with  a  pro- 
ducing capacity  of  50,000  tons  per  annum  and  a  storage 
capacity  of  37,000;  and  wholly  or  partly,  owns  and  oper- 
ates 25  artificial  ice  factories  in  the  following  cities:  San 
Francisco  (2),  Los  Angeles  (2),  Sacramento,  Oakland  (2), 
Stockton  (2),  Fresno  (2),  Red  Bluff,  Vallejo,  Sonora, 
Berkeley,  Riverside,  Santa  Rosa,  Watsonville,  Merced, 
Petaluma,  San  Jose,  Marysville,  San  Bernardino,  Porter- 
ville  and  Bakersfield,  with  a  daily  capacity  of  1,011  tons 
and  a  storage  capacity  of  46,775  tons  of  ice.  Plants,  equip- 
ment, real  estate,  etc.,  were  appraised  at  $5,750,000  on  May 
22,  1913,  and  since  that  date  new  construction  to  the 
amount  of  more  than  $500,000.00  has  been  completed  or 
nearly  completed. 

Net    Earnings. 

1910 $363,116.00         1912 $460,157.00 

1911 420,496.00         1913 487,733.58 

Officers. 
N.    Ohlandt,    Pres.  F.  B.  Whipple,  2nd  V.-P. 

Jno.   A.   Buck,   1st  V.-P.  Joseph   Martin,  Gen'l   Mngr. 

J.   T.   Donahue,  Sec'y  &  Treas. 

Nevada  California  Power  Co.,  Denver,  Colo. 

The  operations  of  the  company  and  its  subsidiaries  cover 
the  mining  districts  of  Goldfield,  Tonopah,  Millers,  Man- 
hattan, Round  Mountain,  Rhyolite,  Blair  and  other  towns 
and  cities  of  Western  Nevada,  where  a  large  proportion  of 
the  company's  output  is  required  for  mining  operations 
and  lighting.  The  company  also,  through  its  subsidiary, 
The  Southern  Sierras  Power  Company,  serves  districts 
in  Inyo,  Kern,  San  Bernardino  and  Riverside  counties, 
California,  and  through  a  long  term  contract  with  the 
Coachella  Valley  Ice  &  Electric  Company  and  the  Holton 
Power  Company,  will  supply  power  for  distribution  to  the 
Coachella  and  Imperial  Valleys,  California,  as  far  south  as 
the  Mexican  border.  The  territory  served,  including  that 
reached  by  the  lines  of  the  Pacific  Power  Company  (an 
allied  and  inter-connected  company),  covers  a  total  dis- 
tance, running  north  and  south  along  the  western  portion 
of  Nevada  and  the  eastern  portion  of  California,  of  nearly 
600  miles.  In  addition  to  furnishing  power  for  mining  and 
irrigation,  the  company  owns  and  operates  local  dis- 
tributing systems  in  the  cities  and  towns  of  Bishop,  Big 
Pine,  Lone  Pine,  Randsburg,  Inyokern,  San  Jacinto,  Hemet, 
Perris,  Elsinore  and  Corona,  California;  also  electric  plant 
and  distributing  system  at  San  Bernardino  and  Barstow, 
California;  also  wholesale  current  to  the  cities  of  Redlands 
and  Riverside,  California,  for  municipal  use. 

The  company  operates  an  extensive  system  of  telephone 
lines  covering  practically  the  same  territory  served  by  its 
electrical  transmission  lines  as  far  south  as  San  Bernar- 
dino, California,  with  exchanges  in  many  small  towns  and 
working  arrangement  with  the  Pacific  Telephone  and  Tele- 
graph Company. 

Subsidiary  Companies. 

The   Southern   Sierras   Power  Co.       Bishop   Light   &   Power  Co. 
The  Sierras  Construction   Co.'  Corona  Gas  &  Electric  Light  Co. 

Interstate  Telegraph   Co.  Hillside  Water   Co. 

Capitalization. 
Stock —  Authorized    Outstanding 

Common     $5,000,000  $5,000,000 

Bonds    8,000,000  5,413,000 

Physical  Property. 
The  company's  physical  properties  consist  of  five  (5) 
hydro-electric  plants  on  Bishop  Creek,  California;  aggre- 
gate capacity  22,000  kilowatts;  also  auxiliary  steam  plant 
at  San  Bernardino,  California;  capacity  9,000  kilowatts; 
553  miles  of  transmission,  560  miles  of  distributing  and  643 
miles  of  telephone  lines.  The  company  owns  a  ranch  and 
irrigating  system  at  Bishop,  California,  covering  about 
5,000  acres. 


CORPORATIONS 


137 


Earnings. 
Gross  *Net 

Year  Revenue       Earnings       tlnterest         Balance 

1910     $744,644  $512,451  $175,083  $339,409 

1911     772,846  560,025  167,323  392,161 

1912     872,844  580,572  157.438  423,134 

1913     998,457  513,696  120,228  375,283 

'Net  earnings  are  shown  after  deducting  operating  expenses 

and  taxes. 

fLess  interest  earned. 

Officers. 
Delos   A.    Chappell,    Pres.  I.  iwrence  C.  Phipps,  Jr.,  Treas. 

Rodney    Curtis,    Vice-Pres.  G.  S.   Wood,  Asst.  Treas. 

G.   S.   Wood,  Vice-Pres.  A.   S.  Cooper,  Asst.  Treas. 

A.    B.   West,  Vice-Pres.  W.  E.  Porter,  Sec. 

J.  R.  Dixon,  Gen.  Counsel. 

Northern  California  Power  Co.,  Cons., 

San  Francisco,  Cal. 

The  company  operates  5  hydro-electric  plants  in  Shasta 
Co.,  Cal.,  and  2  in  Tehama  Co.,  serving  46  cities  and  towns 
in  these  counties  and  in  Glenn  and  Colusa  Cos.  with  elec- 
tric light  and  power.  It  also  operates  gas  and  water  works 
in  Redding  and  Willows,  and  gas  works  in  Red  Bluff. 

Subsidiary  Companies. 

Northern  Calif.  Pr.  Co.     Battle    Creek    Pr.    Co.  Sac.    Valley    Pr.    Co. 
Keswick   Elec.   Pr.   Co.  The   Redding   Wr.    Co.  The  Sac.   Val.   Pr.   Co. 

Capitalization. 

Stocks —  Authorized  Outstanding. 

Preferred    (6%    cum.) $2,000,000 

Common     10,000,000  $10,000,000 

Funded    Debt — 

Bonds     11.900,000  7,157,200 

Physical  Property. 

The  company  owns  and  operates  the  following  hydro- 
electric plants  in  Shasta  Co.,  Volta,  Kilarc,  Coleman,  South 
Cow  Creek,  Snow  Creek,  and  the  following  in  Tehama 
County-South  Power  House,  Inskip,  with  combined  output 
of  49,800  H.  P.  Through  consolidation,  it  acquired  and 
owns  and  operates  the  gas  plants  and  containers,  mains, 
etc.,  in  Redding,  Red  Bluff  and  Willows,  and  the  water 
works  in  Redding  and  Willows.  Operates  under  State 
Constitution  and  Public  Utilities  Act,  requiring  no  fran- 
chises. It  also  owns  the  entire  capital  stock  of  its  two 
subsidiaries — Sacramento  Valley  Power  Co.  and  the  Sac- 
ramento Valley  Power  Company. 

Earnings. 
Gross         *Net 
Tear.  Revenue. t  Earnings.  Interest.  Balance. 

1910     $688,545     $406,843      $122,834     $284,009 

1911     654,898        421,291        156,403        264,888 

1912     727,562        412.736        282,788        129,948 

1913     822,043        488.383        350.666        137,717 

•Net  earnings  are  shown  after  deducting  operating  expenses 

and   taxes. 

tlncludes  store  and  ranch  account. 
Officers. 

H.   H.    Noble,   Pres.  E  V.  D.  Johnson,  Mgr. 

A.  S.   Carman,  V.-P.  Edw.  Whaley,  Sec'y. 

F.    Reis,  Jr.,   V.-P.  W.  H.  Pearce,  Asst.  Sec'y. 

Oakland,  Antioch  &  Eastern  Railway, 

San  Francisco,  Cal. 

The  company's  operations,  with  those  of  its  direct  con- 
nections and  tributaries,  extends  through  six  counties  in 
the  State  of  California,  connecting  the  populous  bay  sec- 
tion, including  San  Francisco  and  Oakland,  through  the 
San  Ramon  Valley  to  the  capital  city  of  Sacramento. 

Operates  through  cars,  over  its  connections,  to  Chico 
and  Marysville.  It  is  unusual  in  the  fact  that  with  ap- 
proximately 100  miles  of  main  line  it  is  tributary  to  a 
population  of  1,000,000,  more  than  one-third  of  the  total 
population  of  the  State  of  California. 

It  has  entrances  and  terminal  facilities  in  Sacramento 
and  Oakland,  carrying  its  cars,  by  arrangement  with  the 
Key  Route,  directly  to  the  Key  Route  mole;  thus  having 
the  quick  ferry  service  to  San  Francisco. 

A  bridge  permit  has  been  granted  by  the  War  Depart- 
ment to  bridge  the  Suisun  Straits,  which,  when  completed 
will  give  this  road  the  only  all  rail  entrance  into  the  Bay 
Cities. 

Subsidiary  Companies. 
Oakland  &  Antioch  Ry.  San  Ramon  Val.  R.  R. 
Capitalization. 

Stocks —  Authorized.  Outstanding. 
Common     $10,000,000         $  9,200,000 

Funded    Debt — 

Bonds     7,100,000  4,600.000 

Six   %   four  year  gold  notes 700,000  317,000 

Physical  Property. 

The  Company  has  36  passenger  and  motor  cars  and  a 
large  equipment  of  flat,  box  and  express  cars.  Four  elec- 
tric passenger  and  freight  locomotives  and  two  steam 
locomotives.  Operates  four  substations.  Roadbed  is  70 
lb.  Ferro  titanium  rail,  all  rock  ballasted. 
Officers. 

W.    Arnstein,    Pres.  H.   C.    Breeden,   V.-P. 

S.     I..    Naphtaly,    V.-P.  H.  A.  Mitchell,  Sec'y  &  Gl.  Mgr. 


Oro  Electric  Corporation,  San  Francisco,  Cal. 

The  company   furnishes  light,  water  and  power  to  the 

city  of  Oroville  and  vicinity. 

Subsidiary  Companies. 

Oro  Water  Light  &  Power  Co.  Oroville   Light   A  Power  Co. 

Oro  Development  Co. 

Capitalization. 

Preferred  (6%  cum.)   $  3,500,000  $3,500,000 

Common     6,500,000  6,500,000 

Stocks —                                                  Authorized  Outstanding 

Funded  Debt — 

Bonds     11,750,000  11.275,000 

Physical   Property. 

The  company  owns  undeveloped  hydro-electric  properties 

on  Deer  Creek  and  Tehama  Creek  in  Tehama  Co.,  Cal.; 

a  hydro-electric  plant  on  Yellow  Creek,  Plumas  Co.,  with  a 

capacity  of  50,000  h.  p.;  a  steam  relay  plant  at  Stockton. 

The   ultimate  possible   development  of   the  hydro-electric 

properties  owned  by  the  company  is  130,000  h.  p.     The 

company  owns  the  entire  capital  stock  of  its  subsidiaries. 

Officers. 

tW.   Goodwin,   Pres.  E.  B.  Bumsted,  Vice-Pres. 

.   J.   Holton,   Vice-Pres.  J.   K.   Moffiitt,  Sec. 

R.  Leo  Van  dcr  Naillen,  Gl.  Mgr. 

Pacific  Coast  Company,  Seattle,  Wash. 

The  company  is  engaged  either  directly  or  through 
constituent  subsidiary  and  affiliated  corporations  in  real 
estate,  railroad,  steamship,  lumber,  coal  and  mining  en- 
terprises in  the  entire  Pacific  Coast  territory  from  Mexico 
to  Alaska. 

Subsidiary  Companies. 

Columbia  &  Puget  Sd.  R.  R.  Co.  Pacific  Coast  Coal  Co. 
Pacific  Coast  Railway.  Pacific  Coast  Steamship  Co. 

Capitalization. 
Stocks —  Authorized.  Outstanding. 

1st  preferred    (5%) $1,525,000  $1,525,000 

2nd    preferred    4,000,000  4,000,000 

Common     7,000,000  7,000,000 

Funded   Debt — 

Bonds     5,000,000  6,000,000 

Serial  notes  due   1916-1919    1,000,000  750,000 

Physical  Property. 
The  company  owns  and  operates  18  steamships;  57  miles 
of  standard  gauge  railroad  from  Seattle  to  Franklin,  105 
miles  of  narrow  gauge  road  in  California  from  Port  Lui3 
to  Los  Olivos  and  Branches;  docks  and  wharves  at  Seat- 
tle, Tacoma,  San  Francisco,  Skagway,  Nome  and  other 
points;  coal  lands  at  various  points  in  Washington  with 
an  aggregate  acreage  of  12,180  acres;  real  estate  hold- 
ings in  San  Francisco,  Seattle,  Portland  and  Alaska  ports, 
and  more  than  3,000  acres  of  timber  and  logged  off  land 
in  Washington.  The  company  also  owns  a  controlling  in- 
terest in  the  stock  of  its  subsidiaries  and  %  the  capital 
stock  of  the  Juneau  S.  S.  Co.,  and  the  Ketchiken  Wharf  Co. 
Railroad  equipment:  19  locomotives,  20  passenger  cars, 
687  freight  cars. 

Earnings. 

Fiscal  year  ends  June  30. 

Gross  *Net 

Year.  Revenue.     Earnings.     Interest.     Balance. 

1911    $7,833,437      $1,363,678      $250,000     $1,113,678 

1912    7,525.491        1,115,090        250,000  865,090 

1913    7,989,080        1,225,260        250,000  975,260 

1914    7,198,135  855,736        259,375  596,361 

•Net  earnings  are  shown  after  deducting  operating  expenses 

and  taxes. 

Dividends. 

•05    '06    '07    '08    '09    '10  '11  '12  '13  "14 

1  st    preferred,    %...5       5       5       6       5       5  5  6  5       5 

2nd   preferred,    %...    5%    6       6       4%    4%    9  6  6  6       5% 

Common,    % 5%    6       6       4%   4&   9  6  6  6       6% 

Officers. 

Wm.  M.   Barnum,  Pres.,  X.  Y.  C.  C.  Fay,  Sec'y  &  Treas,  N.  Y. 

J.    C.    Ford,    V.-P.    &    Gen'l    Mgr.        J.   W.  Smith,  Asst.  Sec'y   &  Gen'l 
Seattle.  Auditor,    Seattle. 

Pacific  Electric  Railway  Co.,  Los  Angeles,  Cal. 

The  Company  operates  an  interurban  electric  railway 
system  centering  at  Los  Angeles,  Cal.,  extending  into  the 
counties  of  Los  Angeles,  San  Bernardino,  Riverside  and 
Orange  and  serves  the  cities  of  Pasadena,  San  Bernar- 
dino, Riverside,  Colton,  Redlands,  Pomona,  Ontario,  Santa 
Ana,  Long  Beach,  Venice,  Ocean  Park,  Santa  Monica,  Re- 
dondo,  San  Fernando,  Owensmouth  and  Lankershim. 

Estimated  population  of  territory  served,  including  Los 
Angeles,  900,000. 

Subsidiary  Companies. 

Pacific   Electric    Land   Company. 

Capitalization. 

Authorized  'Outstanding 

Common  stock  $100,000,000  $74,000,000 

Bonds    156,130.000  56.528,000 

•Owned  by  Southern  Pacific  Co. 


138 


CORPORATIONS 


Physical  Property. 
The  company  owns  and  operates:  536  miles  of  single 
track,  313  miles  of  second  track,  98  miles  of  sidings,  etc.; 
total,  947  miles.  It  operates  under  lease:  28  miles  of  sin- 
gle track;  18  miles  of  sidings,  etc.;  total,  46  miles.  It  oper- 
ates under  contract:  9  miles  of  single  track,  .3  miles  of 
sidings,  etc.  It  operates  under  trackage  rights:  1  mile  of 
single  track,  sidings,  etc.  Total  miles  of  line  in  operation 
June  30,  1914,  1,005  miles. 
The  company  owns  and  operates — 

With         Without 
Electric  Electric 

Equipment.  Equipment. 

Passenger  Cars   610  13 

Freight  Cars 1,228 


Combination  Cars 
Express   Cars   . . . 

Work  Cars 

Locomotives    .    .  . 
Miscellaneous   .    . 


17 
26 
21 
49 
7 


31 
1 

10 


Total  equipment  in  operation  June  30, 

1914    730 


1,283 


The  company's  real  estate  holdings  consist  of  right  of 
way,  station  grounds  and  other  lands  used  in  the  opera- 
tion of  the  road.  Power  is  purchased  from  Southern  Cali- 
fornia Edison  Company  and  Pacific  Light  &  Power  Com- 
pany. The  company's  lines  are  operated  under  franchise 
ordinances  granted  by  cities  and  counties.  All  franchise 
payments  are  a  percentage  of  a  pro  rata  proportion  of  the 
company's  gross  receipts  based  on  the  mileage  of  line 
covered  by  the  franchise  to  the  mileage  of  the  entire  sys- 
tem. 

Statistics.* 

Mileage  of  Line  in  Operation —  1912. 

Owned  and  operated 907.194 

Operated  under  lease 40.516 

Operated  under  contract 6.220 

Operated  under  trackage  rights       


1913.  1914. 

930.050  947.872 

46.187  46.934 

6.220  9.440 

1.525 


Total  miles  operated 953.930 


982.457       1,005.771 


Capital  Expenditures —  1913.  1914. 

Road $1,614,511  $2,365,919 

Equipment    502,765  205,280 

General  Expenditures   30,556  60,162 

Floating  Equipment   48,598  


Total  Expenditures $2,196,430         $2,631,361 

1912.  1913.  1914. 

Car  Mileage 27,320,758  30,709,718  30,787,415 

Passengers  Carried 69,751,537  78,803,806  82,084,424 

*A11  figures  are  for  fiscal  year  ending  June  30th. 

Earnings. 

Gross  *Net 

Year.  Revenue.       Earnings.         Interest.     Balance. 

1912t     $8,645,504        $2,574,518        $2,195,944     $$378,574 

1913    9,399,080  2,655,653  2,531,540        J124.113 

1914    9,467,483  2,366,911  2,820,839        §453,928 

•Net  earnings  are  shown  after  deducting  operating  expenses 

and  taxes. 

fFigures  for  1912  are  for  constituent  companies  for  months 
of  July  and  August,  1911,  and  for  Pacific  Electric  Railway 
Company  (of  Sept  1,  1911),  for  balance  of  year. 

^Surplus. 

SJDeficit. 

Officers. 

Paul  Shoup,  Pres.  J.  McMillan,  Gen.  Manager. 

A.  K.  Van  Deventer,  V.  P.  Geo.  E.  Pillsbury,  Chief  Engineer. 

H.  A.  Culloden,  Sec.  &  Auditor.  F.   L.  Annable,  Gen'l  Supt. 

I.   W.  Hellman,  Treas.  D.  W.   Pontius,  Traffic  Manager. 

Frank   Karr,  Attorney.  Geo.  L.  Bugbee,  Land  Agent. 

Pacific  Gas  &  Electric  Co.,  San  Francisco,  Cal. 

The  operations  of  the  Pacific  Gas  &  Electric  Company 
extend  into  thirty  counties  of  the  State  of  California,  hav- 
ing an  area  of  37,452  square  miles,  and  a  population  at 
the  1910  census  of  1,324,476.  The  company's  business 
field  embraces  the  populous  San  Francisco  Bay  section 
and  the  fertile  Sacramento  and  San  Joaquin  Valleys,  in- 
cluding the  cities  of  San  Francisco,  Oakland,  Sacramento, 
San  Jose  and  167  other  communities.  The  company  owns 
and  operates  properties  employed  in  the  manufacture  and 
sale  of  gas  and  electricity  for  light,  heat  and  power,  in 
street  railway  operation  and  in  the  sale  of  water. 

The  franchise  rights  of  the  company  are  either  unlimited 
In  time  or  extend,  with  minor  exceptions,  beyond  the 
maturity  of  its  bonds,  and  the  larger  part  of  the  transmis- 
sion lines  is  located  on  private  right  of  way. 

Subsidiary  Companies. 

Cal.  Gas  &  Elec.  Corp.  Sac.  Elec.  G.  &  Ry.  Co.  Subn.  Lt.  &  Pr.  Co. 

Bay    Counties   Pr.    Co.    Cent.  Elec.  Ry.  I.ivermore  W.  &  P.  Co. 

Nev.  Co.  Elec.  Pr.  Co.  Blue  Lakes  Wtr.  Co.  S.   F.   Gas  &  Elec.  Co. 

Yuba    Elec.    Pr.    Co.       United  Gas  &  Elec.  Co.  Pac.  Gas  Imp.  Co. 

Valley  Counties  Pr.  Co.  So.  Yuba  Water  Co.  Edison  Lt.  &  Pr.  Co. 

Cal.  Cen.  G.   &  E.  Co.  Cent.   Cal.   Elec.   Co.  Mut.    Elec.    Lt.   Co. 

Oak'ld  G.  L.  &  H.  Co.  Std.  Elec.  Co.  of  Calif.  Met.    Gas   Corp. 

Capitalization. 

Stocks —  Authorized. 

1st  preferred  (6  per  cent) $  50,000,000  

Preferred  (6  per  cent) 10,000,000         $10,000,000 


Common 100,000,000 


32,109,300 


Funded  Debt — 
Five  per  cent,  gold  notes  due  1915. .        7,000,000  7,000,000 

General  and  refunding  5s 150,000,000  24,986,000 

Divisional    bonds Closed  *50,499,800 

•In  addition  to  this  amount,  $2,344,200  bonds  are  held  alive 
in  Sinking  Funds. 

There  are  also  outstanding  $3,572,000  additional  General 
and  Refunding  Mortgage  5's  and  $5,000,000  General  Lien  6 
per  cent  bonds.  "Series  A,"  all  of  which  are  pledged  as 
collateral  for  the  issue  of  notes. 

Physical    Property 

The  company  has  electric  power  plants  with  a  total 
generating  capacity  of  233,928  H.  P.,  of  which  123,740 
H.  P.  is  hydro-electric.  It  owns  and  operates  forty  miles 
of  street  railway  track  in  Sacramento,  the  capital  of  the 
state.    The  gas  department  has  2,374  miles  of  mains. 

In  November,  1913,  the  company  completed  the  first  sec- 
tion of  an  important  hydro-electric  development  on  the  Yuba 
and  Bear  rivers,  including  an  immense  storage  reservoir 
at  Lake  Spaulding,  over  33,000  H.  P.  of  generating  capa- 
city, and  a  steel  tower  transmission  line,  110  miles  in 
length,  to  the  center  of  the  company's  distributing  system. 
There  was  expended  on  this  development  to  December 
31,  1913,  approximately  $7,000,000,  from  which  practically 
no  return  was  received  during  1913,  but  which  should  result 
in  substantially  increasing  the  net  earnings  of  the  com- 
pany in  future  years.  When  the  ultimate  capacity  of  this 
development,  namely  190,000  H.  P.,  has  been  reached,  it  is 
believed  that  this  will  rank  as  one  of  the  cheapest  develop- 
ments of  its  size  and  character  in  the  United  States.  Fur- 
thermore, it  will  make  the  company  independent  of  out- 
side sources  of  power  supply,  will  enable  it  to  effect  a  sub- 
stantial saving  as  compared  with  the  present  cost  of  cur- 
rent purchased,  and  will  give  it  a  source  of  energy. 

The  company  owns  in  fee  all  of  the  property  of  its 
subsidiary  companies.  (/gee  map  opposue) 

Statistics. 

The  following  table  shows  the  growth  during  the  past 

seven  years  in  the  number  of  consumers   served  by   the 

company: 

Gas.  Electricity.  Water.  Steam.  Total 

December  31,   1907 122,304        55,704  5,263       183,271 

31,   1908 131,235        63,073  5,601       199,909 

31,1909 140,670        71,643  5,939       218,252 

31,1910 153,566        84,329  6,430       244,325 

"           31,1911 177,510  102,198  7,398       287,106 

31,1912 196,133  116,666  8,071  222  321,092 

31,1913 208,269  132,355  8,511  282  349,417 

June             30,1914 211,132  137,916  8,873  307  358,288 

Earnings. 

Gross  *Net 

Year.  Revenue.       Earnings.         Interest.  Balance. 

1907     $11,342,140     $5,115,911      $2,854,264     $2,261,647 

1908     12,657,305  5,864,586  3,021,722  2,842,864 

1909     13,491,288  5,959,712  2,988,522  2,971,191 

1910     14,044,596  6,123,255  3,006,256  3,116,999 

1911     14,604,609  6,390,537  3,254,133  3,136,404 

1912     14,744,651  6,313,090  3,568,943  2,744,147 

1913     16,202,337  6,871,131  3,902,045  2,969,085 

♦Net  earnings  are  shown  after  deducting  operating  expenses 

and  taxes. 

Sources  of  Gross   Revenue. 

Year.      Electricity.  Gas.  St.  Ry.  All  Other.  Total. 

1907 $6,316,629  $4,086,372  $431,800  $507,339  $11,342,140 

1908 7,059,088  4,494,945  414,326  688,946  12,657,305 

1909 7,678,665  4,860,034  452,396  500,193  13,491,288 

1910 7,899,224  5,202,284  509,152  433,936  14,044,596 

1911 7,823,903  5,735,219  533,520  511,967  14,604,609 

1912     ...    7,672,570  6,805,865  547,187  719,029  14,744,651 

1913 8,230,782  6,547,595  572,913  851,047  16,202,337 

OFFICERS. 


F.  G.  Drum,  Pres. 
John  A.   Britton,  V.-P.  &  Gl.  Man. 
A.  F.  Hockenbeamer,V.-P.  &Treas. 
J.   E.   Gladstone,   3rd  V.-P. 


D.  H.  Foote,  Sec'y  and  Asst.  Tr. 
Joseph  C.   Love,  Asst.  Treas. 
Chas.    L.   Barrett,  Asst.    Sec'y. 
M.    K.    Parker,   Asst.    Sec'y. 


Pacific  Light  and  Power  Corporation, 

Los  Angeles,  Cal. 
The  Corporation  does  a  general  lighting  and  power  bus- 
iness in  Southern  California,  centernig  about  Los  An- 
geles; a  large  part  of  its  business  being  the  supply  of  cur- 
rent to  the  Los  Angeles  Railway,  with  a  trackage  of  385% 
miles  of  street  railway,  and  to  the  Pacific  Electric  Railway, 
which  operates  approximately  560  miles  of  urban  and  inter- 
urban  electric  road  in  Los  Angeles  and  vicinity.  It  also 
sells  current  for  lighting  and  power  throughout  Southern 
California,  principally  in  the  counties  of  Los  Angeles, 
Riverside,  San  Bernardino  and  Orange.  Next  to  the  rail- 
way load,  the  most  important  power  business  is  that  of 
operating  motors  for  irrigation  purposes. 
Subsidiaries. 

The    Mentone    Power    Company.        Kern   River   Company. 
San   Joaquin   cV   Eastern   Railroad   Company. 
Capitalization. 

Stocks —                                               Authorized.  Outstanding. 

1st    preferred    (cum.) $   5,000,000  $   3.057,000 

2nd   preferred    (cum.) 10,000,000  9,975,000 

Common     25,000,000  10,559,500 

The  majority  of  the  stock  is  owned  by  H.  E.  Huntington. 


CORPORATIONS 


139 


140 


CORPORATIONS 


Physical  Property. 
The  company  operates  three  steam  plants  of  modern 
design,  of  55,919  H.  P.  one  of  which  is  located  in  the  City 
of  Los  Angeles.  The  eight  hydro-electric  plants  operated 
have  an  aggregate  capacity  of  99,631  H.  P.  the  largest  of 
which  is  located  at  Big  Creek  in  Fresno  County,  with  a 
present  capacity  of  approximately  80,400  H.  P.  Other 
hydro-electric  plants  are  on  the  Kern  River  and  in  the 
mountains  about  the  San  Bernardino  Valley. 

The  company  operates  about  1,245  miles  of  high  tension 
transmission  line,  of  which  241  miles  is  150,000  volt  steel 
tower,  aluminum  cable  line.  Its  distributing  system  con- 
sists of  1,976  miles  of  overhead,  and  an  underground  sys- 
tem in  the  congested  district  of  Los  Angeles  City. 

Statistics. 

H.  P.  in  Incandescent     Arc 

Lamps. 

421 
1.232 
2,257 
4,424 


No.  Of 

No.  of 

Tear. 

Meters. 

Motors. 

1898    .. 

..       950 

125 

1903    . 

..    2,919 

640 

1908    .. 

..    8,184 

959 

1913    . 

..24,112 

2,423 

Earni 

Gross 

Operating 

Earnings. 

Expense. 

1908    .. 

...$       49,444 

$       28,338 

1903    .. 

602,980 

467,695 

...    1,796,899 

957,592 

1913    . 

2,852,061 

1,574,474 

Motors. 
458 

7.306 
11,654 
32,560 


Lamps. 

19,775 

73,393 

202,646 

474,638 


of  Walla  Walla  and  an  interurban  line  thence  to  Milton, 
Oregon.  The  company's  franchises  are  either  unlimited  or 
extend  for  a  long  period. 

Statistics. 

Customers    served                 Elec.  L.  &  P.  Gas  Water 

1912            13,952  4,597  4,162 

1913      15,285  5,759  4,442 

Earnings. 

Gross  *Net 

Year  Revenue.        Earnings.         Interest.         Balance. 

1912       $1,257,364  $609,327  $288,070  $321,257 

1913  11288,059  624,385  341.656  282,729 

•Net  earnings  are  shown  after  deducting  operating  expenses 

and  taxes. 

Officers. 


Net 

Earnings. 

$       21.105 

135,285 

839,307 

1,277,587 


Interest. 

$   12,467 

73,087 

518,404 

516,385 


H.  E.  Huntington, 
G.  C.  Ward,  V.-P 
W.  E.  Dunn,  V.-P. 


Pres. 


Balance. 

$      S.638 

62,197 

320,904 

761,202 

Officers. 

A.    N.   Kemp,   Treas.    &   Compt. 
W.  J.   Gracev,  Purchasing  Agent. 
E.    R.   Davis,   Director. 
O.   V.  Showers,  Sec'y. 

Pacific  Lumber  Co.,  San  Francisco,  Cat. 

The  company  operates  exclusively  in  redwood,  having 
extensive  logging  and  milling  operations  in  Humboldt 
County,  Cal.,  where  they  manufacture  various  grades  of 
redwood  lumber,  of  which  they  are  large  exporters.  The 
company  maintains  general  offices  in  San  Francisco,  and 
branch  offices  in  New  York,  Chicago,  Kansas  City,  Los  An- 
geles, and  Saginaw,  Mich. 

Capitalization. 

Stocks —  Authorized         Outstanding 

Common $10,000,000  $9,133,300 

Funded  Debt — 

Bonds    2,250,000  2,000,000 

Physical  Property. 

The  company  owns  65,021  acres  of  redwood  stumpage, 
of  which,  as  of  December  31,  1913,  48,099  acres  were  virgin 
timber.  Owns  and  operates  two  mills  at  Scotia,  Humboldt 
County,  Cal.,  producing  annually  110,000,000  board  feet; 
storage  yards;  dry  kilns,  etc.;  and  wharves  at  Field's 
Landing  on  Humboldt  Bay. 

Officers. 


C.  W.  Penoyer,  Pres. 
Wm.  H.  Murphy,  V.  P. 
J.  H.  Emmert,  Sec. 


Junius  H.  Browne,  Gl.  Sales  Mgr. 
Donald     McDonald,     Gen'l     Mgr. 
(Scotia). 
H.   M.    Robinson,  Treas. 


Pacific  Power  &  Light  Co.,  Portland,  Ore. 

The  company  serves  a  large  territory  in  Washington, 
Oregon  and  Idaho  Including  important  towns  such  as 
Walla  Walla,  Pendleton,  Pasco,  North  Yakima,  The  Dalles 
and  Astoria.  It  does  a  gas  and  electric  business  in  the 
Columbia,  Yakima  and  Walla  Walla  Valleys  and  in  Astoria, 
Ore.  The  company  furnishes  electric  light  and  power  and 
power  service  to  42  communities,  gas  service  to  7,  street 
railway  service  to  2,  interurban  railway  service  to  3  and 
water  service  to  4,  having  an  aggregate  population  of  111,- 
000  (estimated). 

Subsidiary  Companies. 
Walla    Walla    Valley    Ry.    Co. 

Capitalization.* 

Stocks —  Authorized. 

Preferred    (7%   cum.)    $  3,500.000 

2nd  preferred  (7%  cum.)    2,500,000* 


Outstanding. 

$2,000,000 
1,500,000 
6,000,000 


Common     6,000,000* 

Funded  Debt — 
Bonds     30,000.000  6,076.000 

•This  company  is  controlled  by  the  American  Power  & 
Light  Co.  (Electric  Bond  &  Share  Co.)  which  owns  all  the 
common  and   second   preferred   stocks. 

Physical  Property. 

The    company    owns    and    operates    electric    generating 

plants  with  an  aggregate  capacity  of  27,610  hp.   (of  which 

20,760    hp.   is   hydro-electric),   gas   holders   of   439,500    cu. 

ft.  capacity;   749  miles  of  distributing  lines;   444  miles  of 

high  voltage  transmission  lines;   119  miles  of  gas  mains 

and  89  miles  of  water  mains.     It  owns  all  of  the  capital 

stock    (except  directors'  qualifying  shares)    of  the  Walla 

Walla  Valley  Ry.  Co.  which  operates  the  electric  railways 


Guy   W.    Talbot,    Pres. 

E.  W.    Hill,    V.-P. 

F.  G.    Sykes,   V.-P. 
A.  S.  Greiner,  V.-P. 


G.    E.    Clanin,    V.-P. 
E.    W.    Cookingham,   V.-P. 
J.  E.  Davidson,  V.-P. 
Geo.    F.    Nevins,   Sec'y. 


Outstanding. 

$32,000,000 

18,000,000 

41,664,000 


31, 
31, 
31, 
31, 


Miles 
of  Wire. 
1,302,853 
1,439,019 
1,724,802 
1,806,169 


Year, 
1910 


E.  P.  Summerson,  Treas. 

Pacific  Telephone  &  Tel.  Co.,       San  Francisco,  Cal. 

The    company    operates    services    throughout   the   entire 
states  of  Washington,  Oregon  and  California  and  in  por- 
tions of  Nevada  and  western  Idaho.     The  estimated  popu- 
lation of  the  territory  served  is  4,250,000. 
Subsidiary  Companies. 
Sunset  Tel.  &  Tel.  Co.  Bell  Tel.  Co.  of  Nevada. 

Capitalization. 

Stocks —         Rate  Authorized. 

Preferred*  $32,000,000 

Common*     .'..'. 18,000,000 

Funded  Debt — 

°»The  American  Tei.' &  Tel.' Co.  'owns  $21,727,200  of  the  pre- 
ferred and  $9,027,000  of  the  common   stock. 
Physical   Property. 

Real  estate,  plants,  general  equipment,  materials  and 
supplies  throughout  the  territory  valued  Dec.  31st,  1913, 
at  $82,153,884;  647,993  connected  stations.  The  work  now 
in  progress  includes  a  new  pole  line  across  Nevada  con- 
necting with  the  Mountain  States  Tel.  &  Tel.  Co.,  which 
will  make  long  distance  service  between  San  Francisco 
and  New  York.  The  total  miles  of  wire  Dec.  31st,  1913— 
1,806,169.  The  company  owns  the  entire  capital  stock  of 
its  subsidiary  companies.  (See  map  opposite) 

Statistics. 

No.  of 
Connected  Stations 

December    31,     1910 446,622 

1911 503,626 

1912 595,186 

1913 647,993 

Earnings. 

•Net 

Earnings.  Interest.  Balance. 

$   2,875,413  $   1,676,208  $   1,199,205 

3,462,274  2,186,147  1,276,127 

4.261,431  2,433,659  1,827,772 

4,333,922  2,177.333  2,256,589 
Net  earnings  aire  shown  after  deducting  operating  expenses 
and  taxes. 

Officers. 

H.   T.   Scott,  Chairman   of  Board.        J.    M.    Quay,   V.-P. 
G.    E.    McFarland,    Pres.  F.   W.   Eaton,  Sec'y  and  Treas. 

H.   D.   Pillsbury,  V.-P.  J.   C.   Nowell,  Gen'l.   Manager. 

F.    C.    Phelps,    Gen'l.    Auditor. 

Phelps,  Dodge  &  Co.,  New  York. 

The  corporation  is  a  holding  company  and  does  not 
operate  directly  any  mining  or  other  plants.  The  statis- 
tics which  follow  refer  to  the  holdings  and  operations  of 
its  subsidiary  companies.  These  companies  operate  cop- 
per mines  in  Arizona  and  New  Mexico  and  in  the  state  of 
Sonora,  Mexico,  and  coal  mines  in  New  Mexico.  The 
companies  operate  in  connection  with  these  mines  smel- 
ters and  reduction  plants,  etc.,  for  the  treatment  of  their 
own  and  other  ores,  and  coke  ovens  in  connection  with 
their  coal  mining  operations.  The  company  also  buys 
and  sells  ores  of  various  kinds  and  their  products.  The 
mercantile  company  operates  seven  stores  and  branches 
in  connection  with  the  operations  of  all  the  subsidiary  com- 
panies. 

Subsidiary  Companies. 

Copper   Queen   Consolidated   Min-  Moctezuma   Copper   Co. 

ing  Co.  Burro  Mountain  Copper  Co. 

Detroit  Copper  Mining  Co.  of  Ari-  Stag  Canon  Fuel  Co.  . 

zona.  Phelps  Dodge  Mercantile  Co. 

Capitalization. 

Stocks —  •  Authorized.  Outstanding. 

Common      $50,000,0000  $45,000,000 

Physical   Property. 

The  company  owns  the  entire  issued  capital  stock  (ex- 
cept shares  required  to  qualify  directors)  of  its  subsidiary 
companies  as  follows:  Copper  Queen  ($2,000,000);  Detroit 
Copper  ($1,000,000);  Moctezuma  ($2,600,000);  Burro 
Mountain  ($160,000);  Stag  Canon  ($3,000,000);  Phelps, 
Dodge  Mercantile   ($2,000,000). 


Gross 
Revenue. 
$14,667,112 

1911     16,070,112 

1912     18,244,786 

1913     19,593,536 


CORPORATIONS 


141 


B    E    R    r    A 


MAP  or 


THE  PACIFIC  TELEPHONE  &  TELEGRAPH  CO. 

SYSTEM 


THE  BVaFIC.TELi.TEL.CO. LINES 


I09& 


CONNECTINe  LINES 

PROPOSED  LINES 


142 


CORPORATIONS 


The  extent  of  the  physical  property  owned  by  the  ope- 
rating companies  is  shown  by  the  following  figures  taken 
from  the  annual  report  for  the  year  1913: 

Copper  Queen  Cons.  Mines:  Total  production,  867,481 
tons.  Exploration  and  development  work,  116,114  feet. 
Reduction  department:  Ore  purchased,  1,041,453  tons; 
treated,  1,034,357  tons.  Copper  produced,  133,410,582  lbs.  Ore 
reserves,  2,536,729  tons.  Power  plant  daily  development, 
4,595.8  H.  P.    Employes,  3,661. 

Detroit  Copper  Mining  Co.  Mines:  Total  production, 
533,563.  Reduction  department:  Ore  treated,  150,695  tons. 
Bullion  produced,  22,255,130  lbs.  Exploration  and  develop- 
ment work,  18,492  feet.     Employes,  1,510. 

Moctezuma  Copper  Co.  Mines:  31,292.5  feet  drifting; 
1,028  feet  exploration  work.  Concentrator:  Milled  603,654 
tons;  produced  135,057,331  tons  of  concentrates. 

Burro  Mountain  Copper  Co.  In  process  of  development, 
3,753  feet  of  haulage  tunnel  driven. 

Stag  Canon  Fuel  Co.  For  production  see  coal  and  coke 
figures  below.    Development  work,  30,226  feet. 

Phelps,  Dodge  Mercantile  Co.  Sales,  $628,932.80.  Em- 
ployes, 490. 

Statistics. 


Copper  &  copper  bearing,  ores 
prod,    (tons)    1,994,465 

Ores  and  concentrates  smelted 
From   companies'    mines... 

1,035,367 

Purchased    82,874 


Copper  produced   (pounds)... 

155,665.712 

Silver  produced  (oz.)  2,078,376 
Gold  produced  (oz.) ..  .32,037 
Lead  produced  (lbs.)  5,701,62S 
Coal  produced  (tons)  1,322,813 
Coke  produced    (tons)    293,090 


Gross 
Tear.  Revenue. 

1910       $  9,099,910 

1911     7,284,508 

1912      10,411,535 

1913      9,581,495 


Earnings. 

•Net 
Earnings. 
$   8,847,388 

7,134,302 
10,285.185 

9,407,709 


Dividends.  Balance. 

$5,399,875  $3,447,513 

5,400,000  U,734,302 

6.750.000  t3, 535, 185 

7,425,000  tl,982,709 


•Net  earnings  are  shown  after  deducting  operating  expenses 
and    taxes. 

t$l, 500,000  deducted  for  depreciation  in  value  of  stocks 
owned  before  transfer  to  surplus  account. 

Dividends. 

Dividends,  1909,  12%;  1910,  12%;  1911,  12%;  1912,  15%;  1913, 
16  %%. 

Officers. 


James    Douglas,     Pres. 
Cleveland  H.  Dodge,  V.-P. 
Arthur    C.   James,    V.-P. 
James    McLean,    V.-P. 


Walter    Douglas,    Gen'l    Manager. 
George    Notman,    Sec'y    &    Treas. 
C.   W.    Parsons,   Asst.   Treas. 
F.   T.    Bulmer,   Asst.    Sec'y. 


Portland  Gas  &  Coke  Co.,         Portland,  Ore. 

The  company  does  the  entire  gas  business  in  Portland, 
Ore.,  and  suburbs,  and  supplies  gas  at  wholesale  to  the  St. 
Johns  Gas  Co.  and  to  the  Pacific  Power  &  Light  for  its  Van- 
couver, Wash.,  service.  The  estimated  population  served  is 
265,000. 

Subsidiary   Companies. 

St.  Johns  Gas  Co. 

Capitalization. 

Stocks —  Authorized.        Outstanding. 

Preferred    (7%    cum.)    $2,000,000  $2,000,000 

Common     3,500,000  3,000,000* 

Funded  Debt — 
Bonds     15,000,000  5,796,000 

•All  common  stock,  except  directors'  shares,  owned  by 
American   Power   &    Light   Co.    (Electric   Bond   &   Share   Co.) 

Physical  Property. 

The  company  has  recently  put  into  operation  an  addi- 
tional plant,  which  is  one  of  the  largest  oil  gas  plants  in 
the  United  States.  This  plant  is  located  at  Linnton  on 
the  Willamette  River  below  the  city  limits.  It  has  three 
20-foot  crude  oil  gas  generators  and  a  complete  scrubbing, 
condensing  and  purifying  system  for  approximately  7,500,- 
000  cubic  feet  daily  output,  and  two  holders  with  a  com- 
bined capacity  of  1,185,000  cubic  feet.  The  plant  has  been 
built  to  accommodate  an  ultimate  daily  generating  capacity 
of  15,000,000  cubic  feet.  A  sixteen-inch  high  pressure  main 
connects  the  new  plant  with  the  company's  distributing 
system  and  with  its  plant  in  Portland,  which  is  maintained 
as  a  reserve  plant.    • 

The  Portland  plant,  which  is  located  on  the  Willamette 
River,  in  the  heart  of  the  City  of  Portland,  has  a  generat- 
ing capacity  of  4,500,000  cubic  feet  daily  and  has  a  holder 
capacity  of  3,000,000  cubic  feet,  including  the  holder  capa- 
city in  East  Portland. 

In  addition  to  the  present  holder  capacity  at  the  new 
plant  and  in  Portland  and  East  Portland,  the  company 
has  under  construction  an  additional  2,000,000  cubic  foot 
holder  in  East  Portland  which  is  being  built  in  order  that 
there  may  be  the  most  effective  distributing  service.    This 


will  give  the  company  a  total  holder  capacity  of  6,185,000 
cubic  feet.  Franchises  of  the  company  are  unlimited  as 
to  time. 

Statistics. 

Customers  served. 

1912     37,276 

1913     40,698 

Earnings. 
Gross  *Net 

Year.  Revenue.     Earnings.       Interest.       Balance. 

1912     $   1,178,772      $   579,163      $   201,745      $   377,418 

1913      1,280,916  655,249  249,137  406,112 

•Net  earnings  are  shown  after  deducting  operating  expenses 

and  taxes. 

Officers. 


Cu.  ft.  output. 

1,480,923,593 
1,652,026,445 


■C.   F.   Adams,   Ch.   of  Board. 
Guy    W.    Talbot,    Pres. 
F.    G.    Sykes,    V.-P. 


A.    S.    Grenier,    V.-P. 

E.   W.   Hill,  V.-P. 

G.    S.    Nevins,    Sec'y      &    Treas. 


Portland  Ry.,  Light  &  Power  Co.,  Portland,  Oregon. 
The  company  operates  all  the  street  railways  in  Port- 
land and  the  vicinity  with  the  exception  of  three  inter- 
urban  lines.  Its  suburban  lines  include  Oregon  City, 
Troutdale,  Cazadero  and  Bull  Run,  Oregon,  and  Vancouver, 
Wash.,  via  the  company's  ferry.  It  furnishes  a  large  per- 
centage of  the  electric  light  and  power  in  Portland  and  all 
the  electric  light  and  power  in  Oregon  City,  Salem  and 
many  other  cities  in  the  state  of  Oregon  and  in  Vancouver, 
Wash.  It  also  operates  the  gas  plant  at  Salem.  Altogether 
the  company  serves  with  electric  light  and  power  26  cities 
and  towns.  Power  is  sold  to  the  three  interurban  lines 
controlled  by  the  Southern  Pacific  and  Northern  Pacific 
Railways,  and  to  the  street  railway  companies  of  Salem 
and  Vancouver. 

Subsidiary  Companies. 

Portland     Ry.     Co.  Portland    Gen'l.   E.   Co.  Will.    V.    So.    Ry.    Co. 

Ore.  Wr.  Pr.  &  Ry.  Co.    Mt.  H'd.   R.  &  Pr.  Co.  Yamhill    Electric    Co. 

Capitalization. 

Stocks —                                                     Authorized.  Outstanding. 

Common     $25,000,000  $18,750,000 

Funded  Debt — 

Bonds   99,100,000  34,000,000 

1    yr.    5    per    cent    gold    notes    due 

May    1915    5,000,000  5,000,000 

Physical  Property. 
The  company  owns  and  operates  295.7  miles  (on  a  single 
track  basis)  of  electric  railways,  633  passenger  cars,  522 
freight,  work  and  express  cars,  and  12  locomotives.  It  also 
owns  and  operates  5  steam  stations  and  5  hydro-electric 
plants  with  a  capacity  of  65,280  KW.  and  22  sub-stations 
with  a  capacity  of  28,580  KW.  In  addition  to  this  equip- 
ment the  company  owns  a  building  used  for  headquarters 
of  light  and  power  service,  car  shops,  four  car  houses,  a 
9-story  building  in  the  center  of  the  business  district  used 
for  its  offices;  the  only  amusement  park  near  the  city, 
large  tracts  of  land  on  the  east  side  of  the  Willamette  River 
valuable  for  terminal  purposes  and  real  estate  in  various 
parts  of  the  city.  The  street  railway  franchises  owned  by 
the  company  expire  in  1932  but  the  company  has  preferen- 
tial rights  covering  subsequent  franchises.  The  power 
and  light  franchises  are  unlimited.  It  also  owns  the  water 
power  at  Willamette  Falls,  Oregon  City.  Power  is  fur- 
nished to  several  large  pulp  and  paper  mills. 

Statistics. 

1913                 1912                 1911  1910 

Elec.  K.  W.  hrs.   184,200,820   169,609,004   152,244,267  120,703,715 
Light     &     Power 

Cus.    served    ..           42,063             38,415             33,192  26,413 

Operating  ratio                 42.5%             42.9%             43.1%  43.3% 

Pass.    Carried    ..   94,074,368     94,876,246     91,600,993  88,310,850 


Gross 
Year.  Revenue. 

1910     $5,638,896 

1911     6.336,703 

1912     6,642,308 

1913     6,723,742 


Earnings. 

•Net 

Earnings. 

$2,914,518 
3,266,806 
3,313,397 
3,425.432 


Interest.  Balance. 

$1,398,029  $1,516,489 

1,510,280  1,756,526 

1,760.991  1,552,406 

2,008,601  1,416,831 


'Net  earnings  are  shown  after  deducting  operating  expenses 
and    taxes. 

Officers. 


Franklin   T.    Griffith,    Pres, 
F.    I.    Fuller.    V.-P. 
M.    S.    Hopkins,   V.-P. 
E.    W.    Clark,    V.-P. 
Herbert  L.   Clark,   V.-P. 


G.   L.  Estabrook,  S.   &  A.  Treas. 
Wm.    Lilley,  Ass't.   Treas. 
C.  N.  Huggins,  Treas.  &  A.  Secy. 
F.    W.    Hild,    Gen'l.    Manager. 
R.  W.  Shepherd,  Aud.  &  Asst.  Sec. 


Puget  Sound  Traction,  Light  &  Power  Co., 

Seattle. 
The  company,  through  ownership  or  control,  does  sub- 
stantially all  of  the  electric  street  and  interurban  railway, 
and  the  greater  part  of  the  commercial  electric  lighting 
and  power  business  in  the  Puget  Sound  district,  including 


CORPORATIONS 


143 


the  cities  of  Seattle,  Tacoma,  Bellingham,  and  Everett, 
Wash.  It  also  supplies  gas  in  the  city  of  Bellingham.  The 
1910  census  gave  these  cities  an  aggregate  population  of 
370,049.    The  present  population  is  estimated  to  be  389,500. 

Subsidiary  Companies. 

Th  Seattle  Ry.  Co.  Whatcom  Co.  Ry.  Lt.  Pacific  N.  W.  Traction 
The   Seattle  Elect.   Co.       &    Pr.    Co.  Puget    Sound    Interna- 

Puget  Sound  Pr.  Co.  Puget  Sound  Elec.  Co.  Uonal  Ry  &  Pr.  Co. 
Pacific    Coast    Pr.    Co.  Tacoma    Ky.    Co. 

Capitalization. 

Outstanding 
in  Hands 

Stocks —  Authorized.  of  Public. 

Preferred    (6   per  cent  cum.) $15,000,000  J14.792.100* 

Common 25,000,000  20,112,3001 

Funded    Debt — 
Bonds     74,000,000  34,286,000 

•Includes  $1,115,200  non  interest  bearing  receipts  exchange- 
able at  par  for  pref .  stock  Jan.  15,  1916. 

tlncludes    $1,544,500    non    interest    bearing    certificates    ex- 
changeable at  par  for  com.  stock  Jan.  15,  1916. 

Physical  Property. 

The    company    owns    or    controls  hydro-electric  power 

plants  with  a  present  development  of  74,000  H.  P.  and  an 

ultimate  development  of  175,000  H.  P.;  steam  stations  with 

a  present  capacity  of  32,550  H.  P.,  and  street  and  interur- 

ban  railways  aggregating  493.3  miles  of  single  track.    It 

owns  623  passenger  and  435  other  cars,  2  steam  and  13 

electric  locomotives.     The  company's  franchises  expire  as 

follows:     Tacoma,  Ry.,  1939;   Lt.  &  Power,  1930;   Seattle, 

Ry.,  1934,  light,  1952;   Bellingham,  Ry.,  1941-1934,  Light  & 

Power,  1940,  gas,  1941.     Interurban  roads  operate  chiefly 

over   private   rights   of   way.    The   company,   directly   or 

through    subsidiary   companies,   owns   all    of   the   capital 

stock  of  its  subsidiaries  excepting  that  of  the  Puget  Sound 

Electric  Ry.,  which  it  controls. 


Statistics. 


No.  passengers 
Electric  Ry. 


No.  consumers 


1913     146,635,191 


(Inc.  Transfers)   Light  &  Power 


36,208 


Earnings. 

Gross  *Net 

Tear.  Revenue.         Earnings.  Interest.  Balance. 

1913     $8,613,599        $3,605,224        $1,811,435        $1,793,788 

•Net  earnings  are  shown  after  deducting  operating  expenses 
and  taxes. 

Officers. 


Frederick   S.   Pratt,  V.-P. 
Alton   W.    Leonard.   V.-P. 
Guy    L.    Weymouth,    V.-P. 
James  C.  Trumbull,  V.-P. 


Thos.    S.    Blumer,   V.-P. 
Henry    B.    Sawyer,    Treas. 
Stone    &    Webster    Management, 
Ass't.  Managers. 


San  Diego  Electric  Railway  Co.,      San  Diego,  Cal. 
The  company  operates  the  entire  electric  railway  sys- 
tem in  San  Diego  and  vicinity,  except  one  short  line. 

Capitalization. 

Stocks Authorized  Outstanding 

Common     $5,000,000  $1,250,000 

Funded  Debt —  „  „  „„, 

Bonds     5,000,000  1,625,000 

Physical  Property. 

The  company  owns  and  operates  63.49  miles  of  main 
track  standard  guage  60  lb.  T  and  114  Trilby  rails;  a  steam 
generating  plant  in  San  Diego  with  capacity  of  7200  kw. 
138  pass,  motor  cars,  and  5  pass,  trail  cars,  and  7  miscel- 
laneous cars.  The  company  has  franchises  covering  all  of 
its  lines  in  San  Diego;  such  franchises  expire  in  1952. 
Statistics. 

Total   number   of  passengers   carried    during   past   five 
years: 

1909 10.720,995 

1910 13.768,038 

1911 17,935,059 

1912 23,667,585 

1913 27.684.826 


Earnings. 

•Net  earnings 


93,776,503 


Gross  rev.  incl.    *Net  earnings       Bond  and 

Year              Misel.  Inc.      Miscl.  inc.  ded.     Other  int.  Balance 

1903    $    434.144               $135,917              $28,228  $107,688 

1910    547,630                 137.793                 41,092  96,700 

1911    675,142                 163.377                 73.460  89.917 

1912    910.532                 267,243                 88,750  178,493 

1913    1,058,977                 196.806                 85,000  111,806 

•Net  earnings  are  shown  after  deducting  operating  expenses 

and  taxes. 

Sources  of  Gross   Revenue. 

Passenger  Sale  of 

Tear  Revenue       Electric  power 

1909    $    393,812  $21,288 

1910    502,612  23,096 

1911    643.645  18.597 

1912    859,526  23.568 

1913    1,001,314  32.581 

Officers. 
John  D.  Spreckels.  Pres.  H.  I..  Titus,  Gen'l  Counsel. 

Wm.  Clayton,  V.  P.  &  Mg.  Dir.  Claus  Spreckles,  Sec.  &  Treas. 


Sale  of 

Miscl. 

Steam 

Revenue 

$19,043 

21,921 

12,899 

27,437 

$13,078 

12,002 

San  Francisco  &  Oakland  Terminal  Railways, 

Oakland,  Cal. 
(Known  as  Key  System.) 
The  company  operates  street  railway  lines  in  and  be- 
tween Oakland,  Berkeley,  Richmond,  Emeryville,  Piedmont, 
Albany,  San  Leandro,  San  Lorenzo  and  Hayward.  The 
system  connects  with  San  Francisco  by  ferry  via  the  com- 
pany's pier. 

Subsidiary   Companies. 
San  Jose  Short  Line.  Oakland  Terminal  Co. 

Capitalization. 
Stocks —  Authorized       Outstanding 

A  preferred  (6%) $12,050,000  $12,050,000 

B    preferred     1,000,000  1,000.000 

Common     15,125,000  15,125,000 

Funded  Debt — 

Bonds     19,997,000  16,656.000 

Notes 2,500,000 

Physical  Property. 
The  company  owns  and  operates  the  equivalent  of  257.13 
miles  of  single  track;  411  pass,  cars  and  66  miscellaneous 
cars;  1  wrecking  crane  and  5  ferry  boats;  docks  and  ter- 
minal facilities  in  Key  Route  Basin.  Franchises  expire 
1933  to  1959. 

Statistics. 

Car  miles        Car  hours 
Tear  Fare  Pass.  Pass.  Pass.  yr. 

1912  75,560,740  16.429,484  1,527,377 

1913  77,072,203  16,318,256  1.613,907 

1914  ;; 76,606,881  16,397,707  1,599,923 

Earnings. 

Gross  'Net 

Year  Revenue       Earnings     Interest     Balance 

1919  $4,776,873      $1,678,304      $875,389     $802,915 

1913 4,676,876        1,600,805        910.012        690,793 

1914 4,651,335        1,477,159        821,598        655,561 

•Net  earnings  are  shown  after  deducting  operating  expenses 

and  taxes. 

Sources  of  Gross  Revenue. 

All 
Tear         Passenger        Freight    Switching  Advertising     other 

1912  $4,281,815  $31,329  $17,615  $14,430  $331,684 

1913  4,422.070  4,691  35.133  22,863  192,119 

1914  4,411,022  8,691  19,212  27,888  184,522 

Officers. 
Geo.  K.  Weeks,  Pres.  Angus  Clark,  Sec.  &  Asst.  Treas. 

W.  R.  Alberger,  V.  P.  &  Gl.  Man.  Kirke  Lathron,  Treu. 

F.  B.  Whipple,  V.  P.  B.  W.  Fernald,  Auditor. 

San  Joaquin  Light  &  Power  Corporation, 

Fresno,  Cal. 

Supplies  electricity  for  lighting,  power  and  pumping 
purposes,  throughout  the  San  Joaquin  Valley,  Including  the 
cities  of  Merced,  Madera,  Fresno,  Selma,  Hanford  and 
Bakersfield,  and  50  towns  and  small  cities.  Gas  is  dis- 
tributed in  Bakersfield,  Kern,  Merced,  Selma;  a  street  rail- 
way system  is  operated  in  the  cities  of  Bakersfield  and 
Kern  and  water  furnished  for  domestic  purposes  in  Selma 
and  Madera.  Population  served,  about  225,000.  The  rights 
under  which  the  corporation  operates  are  without  limita- 
tion in  point  of  time  in  the  cities. 

Subsidiary  Companies. 

San  Joaquin   Light  &   Power  Co.       Power,  Transit  &  Light  Co.  I 

San  Joaquin  Power  Co.  Bakersfield   &    Kern   Electric   Ry. 

Bake-sfield   Gas  &  Electric  Co. 

Capitalization. 

Stocks Authorized  Outstanding 

Preferred  (6  per  cent  cum.) $10,000,000  $  6.500,000 

Common       ...    15,000,000  11,000,000 

BondFsUnded  Debt"~. 31.670,000  7,309.000 

Coll.  Tr.  6  per  cent  notes,  due  1915 909,000 

Physical  Property 

The  corporation  owns  and  has  in  operation  four  hydrau- 
lic generating  plants,  a  steam  reserve  plant  in  Fresno,  and 
a  modern  steam  turbine  plant  in  Bakersfield.  The  elec- 
tric generating  capacity  of  these  plants  amounts  to  57,000 
H.  P.  Water  is  received  at  the  principal  hydraulic  gen- 
erating plant  from  the  Crane  Valley  reservoir,  under  a 
head  of  1,412  feet.  The  company  has  in  operation  675 
miles  of  high  tension  transmission  lines;  the  current  is 
transformed  at  20  sub-stations  and  distributed  through 
1,643  miles  of  distributing  lines.  Recently  a  massive  dam 
at  the  outlet  of  the  Crane  Valley  has  been  constructed,  in- 
creasing capacity  of  the  reservoir  to  51,000  acre  feet  (12 
times  its  former  capacity) ;  thus  providing  ample  water  to 
operate  the  hydraulic  plants  to  their  full  capacity  during 
the  entire  season,  with  a  large  amount  of  reserve. 

Franchises  outside  of  the  incorporated  limits,  with  two 
exceptions,  extend  beyond  the  life  of  the  bonds,  or  else  the 
transmission  lines  are  on  private  right  of  way.  About 
one-half  the  total  length  of  transmission  line  will  be  on 
private  right  of  way. 


144 


CORPORATIONS 


Statistics. 
Consumers 

Light  Power  Gas  Water 

1910 9,011                  630  3,083  722 

1911 11,758                  810  3,918  554 

1912 14,627              1,283  4,449  545 

1913 16,694              1,883  4,662  563 


Gross 
Year  Revenue 

1910     $1,052,463 

1911     1,104,131 

1912     1,401,138 

1913      1,762,320 


Earnings. 

•Net 
Earnings 
$  677,685 
622,538 
864,372 
921,390 


Interest  Balance 

$    225,492  $    452,193 

354,191  268,347 

450,319  414,053 

t431.288  490,102 


*Net  earnings  are  shown  after  deducting  operating  expenses 
and  taxes. 

tExclusive  of  sinking  fund. 

Sources    of    Gross    Revenue. 


1913 

1912 

1911 

1910 

Light     .  . . 

.  .$     632,266 

$    571,101 

$    533,599 

$    462,482 

Power     . . 

.  .       800,905 

514,910 

306,900 

258,154 

.  .       176,016 

153,816 

96,424 

95,566 

15,065 

15,416 

17,650 

17,261 

Railway 

. .       106,664 

110,842 

102,857 

94,766 

Miscell.     . 

31,404 
$1,762,320 

35,053 

46,701 
1,104,131 

124,234 

$1,401,138 

$1,052,463 

W.  G.   Kerckhoff,  Pres. 
A.    C.    Balch,   Vice-Pres. 


Officers. 

L.    M.    Farnham,    Sec. 
A.   E.  Peat,  Treas.  &  Comp. 
A.   G.  Wishon,  Gen'l  Mgr. 


Seattle  Lighting  Co.,  Seattle,  Wash. 

The  company  supplies  all  of  the  gas  for  light,  heat, 
and  fuel  in  the  city  of  Seattle  and  its  suburbs,  serving  a 
population  estimated  at  280,000. 

Capitalization. 

Authorized.  Outstanding. 

Preferred  stock,  6%   $1,000,000  $1,000,000 

Common   stock    3,000,000  3,000,000 

Bonds    12,000,000  6,293,500 

Physical  Property. 
The  company  owns  a  modern  coal  and  water  gas  plant 
with  a  generating  capacity  of  over  5,000,000  cu.  ft.  per  day. 
It  has  recently  added  a  coke  plant. 


Statistics. 


Gas  sold 

1910 715,491,500 

1911 776,402,700 

1912 861,910,300 

1913  973,569,300 


Gas  sold 

1905 316,501,400 

1906 386,518,700 

1907 498,571,700 

1908 564,565,800 

1909 677,241,000 

Earnings. 

Gross  *Net 

Year  Revenue.       Earnings.       Interest.         Balance. 

Aug.  31,  1914 $983,156  $424,117  $332,163  $91,954 

•Net  earnings  are  shown  after  deducting  operating  expenses 
and   taxes. 

Dividend   Record. 

Pref.   1907   to  1913.,  6%;  Common   1911-12-13,   2%. 

Officers. 
J.  W.  Farrell,  Pres.        R.  C.   Dawes,  V.   P.        F.  K.  Lane,  Treas. 

Sierra  &  San  Francisco  Power  Co., 

San  Francisco,  Cat. 
The  Company  operates  hydro-electric  plants  near  San 
Francisco  and  a  large  steam  power  station  in  the  City.  It 
furnishes  powe;-  to  the  United  Railroads  of  San  Francisco 
under  a  contract  running  until  1954  and  general  power 
and  lighting  service  in  its  territory. 

Capitalization. 

Stocks —  Authorized      Outstanding 

•Common   $20,000,000  $20,000,000 

Funded  Debt — 

Bonds    20,000,000  15,358,699 

•The  stock  of   this  company  is  controlled   by   the  United 
Rys.  Inv.  Co.  through  the  Cal.  Ry.  &  Power  Co. 

Physical  Property. 
The  Company  owns  hydro-electric  developments  on  the 
South  and  Middle  Forks  of  the  Stanislaus  River,  which, 
with  the  North  Beach  steam  power  station  in  San  Fran- 
cisco, give  it  generating  capacity  of  approximately  75,000 
H.  P.;  500  miles  of  high  tension  transmission  line,  of 
which  234  miles  are  carried  on  steel  towers;  together 
with  well  constructed  and  equipped  sub-stations  and  dis- 
tribution systems.  The  property  is  in  excellent  condition, 
the  greater  part  having  been  constructed  within  the  past 
five  years. 

Earnings. 

Gross  'Net 

Year  Revenue        Earnings        flnterest        Balance 

1912    $    945,938  $570,559  $345,724       $224,834 

1913    1,088,774  581,978  373,594  208.384 

•Net  earnings  are  shown  after  deducting  operating  expenses 

and  taxes. 

tDoes  not  include  interest  on  Series  "B"  mortgage  bonds 
which  is  payable  in  bonds. 

Officers. 
G.  W.  Bacon,  Pres.  F.  J.  RIanchard,  Sec'y  and  Treas. 

C.  N.  Black,  Vice-Pres.  T.  R.  Hilton.  Asst.  Sec'y  &  Asst. 

H.  F.  Jackson,  V.  P.  &  Gen'l  Mgr.        Treas. 


Southern  California  Edison  Company, 

Los  Angeles,  Cal. 
The  company  furnishes  electric  light  and  power 
throughout  Santa  Barbara,  Kern,  Ventura,  Los  Angeles, 
San  Bernardino,  Orange  and  Riverside  Counties,  serving 
sixty  cities,  towns  and  intervening  territory,  with  a  popu- 
lation of  about  one  million.  Also  operates  gas  distributing 
systems  in  8  cities  and  towns. 

Subsidiary   Companies. 

Long  Beach  Cons.  Gas  Company.       Santa  Barbara  Gas  &  Electric  Co. 

Capitalization. 

Stocks —                                                       Authorized.  Outstanding. 

Preferred  6%    $   4,000,000  $   4,000,000 

Common   6%    26,000,000  10,400,000 

Funded  Debt — 

Bonds 30,000,000  16,302,000 

Physical  Property. 
The  company  owns  and  operates  in  parallel  six  hydro- 
electric plants  on  the  Kern  and  Santa  Ana  Rivers  and  on 
Mill  and  Lytle  Creeks,  with  an  aggregate  development  of 
42,500  h.  p.;  steam  plants  at  Los  Angeles,  Long  Beach  and 
Redlands  developing  77,300  h.  p.;  aggregate  present  de- 
velopment of  all  plants  119,800  h.  p.;  valuable  additional 
water  rights  on  the  Kern  River  capable  of  ultimate  devel- 
opment of  111,000  h.  p.;  one  of  which,  Kern  River  No.  3 — ■ 
33,500  h.  p. — is  actively  under  construction;  also  owns  half 
interest  in  Union  Power  Co.;  hydro-electric  development 
with  capacity  of  10,000  h.  p.  The  company  owns  control- 
ling interest  in  both  its  subsidiaries  (L.  B.  Gas  $640,200 
preferred  and  common;  Santa  Barbara  G.  &  E.  $736,500 
preferred  and  common). 

Statistics. 

No.  of  Consumers —                          Electric.  Gas.  Total. 

December    31,    1910 55,338  12,065  67,403 

December    31,    1911 66,398  9,318  75,716 

December    31,    1912 80,995  11,623  92,618 

December    31,    1913 96,851  13,532  110,383 

June   30,    1914 102,642  13,846  116,488 

Earnings. 

Gross  'Net  Interest  and 

Year —           Revenue.  Earnings.  Amortization.  Balance. 

1910    $3,384,933  $1,667,076  $651,492  $1,015,584 

1911     3,738,165  1,902,280  624,829  1,277,451 

1912    4,337,441  2,008,355  708,796  1,299.559 

1913    4,779,280  2,348,989  813,969  1,535,020 

Year  ending 

June  30,  '14   4,840,105  2,354,859  862,860  1,491,999 

•After  deducting  operating  expenses  and  taxes. 
Dividends. 

1910.          1911.          1912.  1913.  1914. 

Preferred  % ...          5                   5                   5  6                   6 

Common  %....          5                 5                  5  5                 6 
Officers. 

John  B.  Miller,  Pres.  Albert  W.  Harris,  V.  P. 

W.    A.    Brackenridge,   V.    P.,    Gen'l  R.   H.  Ballard,  Sec.  and  Asst.  Gen. 

Man.  Man. 

J.   C.  Drake,  V.   P.  W.  L.  Percey,  Treas. 

W.  R.  Staats,  V.  P. 

Southern  California  Gas  Co.,  Los  Angeles,  cal. 

The  Southern  California  Gas  Company  furnishes  gas  to 
the  city  of  Los  Angeles  and  vicinity,  which  is  now  supplied 
with  approximately  a  fifty  per  cent  mixture  of  natural  and 
manufactured  gas,  and  in  some  localities  with  all  natural 
gas. 

In  addition  to  the  manufactured  gas  supplied  on  the 
above  basis,  the  estimated  output  of  natural  gas  for 
domestic  and  industrial  purposes  is  over  six  billion  cubic 
feet. 

All  of  the  natural  gas  is  supplied  by  the  Southern  Cali- 
fornia Gas  Company,  either  at  retail  to  its  own  consumers 
in  Los  Angeles  city  and  eighteen  nearby  cities  and  towns, 
or  at  wholesale  to  other  distributing  companies,  including 
the  Los  Angeles  Gas  &  Electric  Company. 

The  Southern  California  Gas  Company  supplies  all  the 
manufactured  gas  in  addition  to  the  Natural  gas 
distributed  by  the  Economic  Gas  Company  in  Los 
Angeles  City;  the  Long  Beach  Consolidated  Gas  Com- 
pany in  Long  Beach  and  vicinity;  the  Southern 
California  Edison  Company  in  Santa  Monica  and  vicinity; 
the  Western  Fuel  &  Power  Company  in  Redondo  and 
vicinity,  and  the  Rodeo  Land  &  Water  Company  in  Beverly. 

The  company  also  supplies  and  distributes  manufactured 
gas  to  the  city  of  Riverside  and  surrounding  towns  in  River- 
side County,  and  in  the  city  of  San  Bernardino  and  sur- 
rounding towns  in  San  Bernardino  County. 

Capitalization. 

Stocks —  Authorized     Outstanding 

Preferred  (6%  cum.)    $4,000,000  $       875,000 

Common     6.000,000  6,000,000 

Bonds    10,000,000  4,030,000 

•$3,118,000  face  value  bonds  deposited  as  collateral  securing 
issue  of  $2,338,000  Pacific  Light  &  Power  Company  collateral 
bonds;   $882,000   face  value  with  public. 


CORPORATIONS 


145 


Physical  Property. 
The  company  owns  and  operates  a  generating  plant  in 
Los  Angeles  with  a  generating  capacity  of  8,000,000  cubic 
feet  daily,  and  one  at  Colton  in  San  Bernardino  County 
with  a  generating  capacity  of  2,000,000  cubic  feet  daily; 
gas  containers  with  an  aggregate  capacity  of  1,420,000  cubic 
feet,  and  600  miles  of  mains;  leases  and  operates  approxi- 
mately 111  miles  natural  gas  transmission  line  to  Los 
Angeles  city;  operates  Affiliated  Developing  Company  own- 
ing 9  gas  wells  in  Buena  Vista  Hills  territory. 


Consumers  served. 

statistics. 

1908    

5,796 

1909    

7,579 

1910     

10,646 

I  n  i  

24,838 

•Includes    4    wholesale 

consumers 
Earnings. 

. 

Gross 

•Net 

Year                   Revenue 

Earnings 

Interest 

Balance 

$     121,585 

$       94.579 

$        27,006 

198,728 

135,239 

63,489 

I'll.'     635.200 

279,010 

168,609 

110,410 

1913     1,038.024 

322,170 

209.677 

112.493 

'Net  earnings  are  shown  after  deducting  operating  expenses 

and  taxes. 

Sources 

of    Gross 

Revenue. 

Gas  Sales, 

Gas, 

Consumers 

Wholesale 

Miscellaneous 

Total 

1910     $    256,127 

$     256,127 

454,999 

%       36.913 

$       39,008 

635.200 

1913     617. 495 

403. 1S2 
Officers. 

17,347 

1,038,024 

\V-  G.  Kerckhok,  Pres. 

Kas 

>are   Cohen,   Vice- 
M.    Farnham,  Sec. 

Pres. 

A.    C.    Bakh,   Vice-Pres. 

L. 

A.  E. 

Peat,  Treas. 

&  Comp. 

Soerrv  Flour  Co- 

San  Francisco,  Cal. 

Established,  1852;  Incorporated,  1892. 
The  company  maiufactures  and  sells  flour,  cereals  and 
feeds,  operating  several  mills  in  California,  and  one  in 
Tacoma,  Wash.;  and  maintains  offices  in  17  cities  in  Cali- 
fornia, in  Tacoma,  Wash.,  in  Portland  and  Marshfield, 
Oregon,  and  in  Honolulu.  The  company  does  a  large  export 
business  which  is  handled  by  W.  R.  Grace  &  Co. 
Capitalization. 

Stocks —  Authorized.     Outstanding. 

Preferred     (7%)      $    600,000  $    600,000 

Common     3,600,000  3,378.300 


Funded  Debt — 
Bonds    500,000  500,000 

Physical  Property. 
The  company  owns  mills  at  Stockton  (2),  Vallejo,  Fres- 
no, Chico,  Los  Angeles,  Marysville,  Paso  Robles  and 
Salinas,  Cal.,  and  at  Tacoma,  Wash.  On  June  30,  1914,  its 
real  estate  holdings,  machinery,  equipment,  etc.  (including 
new  construction),  were  valued  at  $1,935,793  after  deduc- 
tions for  depreciation.  Grains  and  manufactured  goods  on 
hand  inventoried  $1,300,110.  The  surplus  on  that  date 
was  $422,566.  Officers. 

John  H.   Rossiter,  Pres.  B.  H.  Ames,  Sec'y. 

S.  B.  McNear,  V.-P  Win.   Thompson,    Treas. 

Spokane  &  Inland  Empire  Railroad  Co., 

Spokane,  Wash. 
The  company  operates  electric  railway  lines  in  Spokane 
and  thence  east  to  Coeur  d'Alene  and  Hayden  Lake;  Col- 
fax and  Palouse,  Wash.,  and  Moscow,  Idaho,  on  the  south, 
with  an  extension  from  Greenacres  (on  the  eastern  divi- 
sion) to  Spokane.  Outside  of  Spokane  the  road  is  in  ac- 
cordance with  standard  steam  railroad  specifications  and 
the  company  transports  all  kinds  of  freight,  light  and 
heavy,  exchanging  with  steam  roads. 

Capitalization. 

Stocks —  Authorized 

Preferred  rights  (5%  cum.) $10,000,000 

<  ommon     10,000,000 

Funded  Debt — 
Bonds     15,000,000 

•Control  owned  by  the  Great  Northern  R.  R.  Co. 
em  Pacific  Ry.  Co.       Physica|  property. 

The  company  owns  and  operates  290.94  miles  of  track 
(single,  sidings  and  spurs);  124  passenger  and  36  other 
motor  cars,  493  miscellaneous  cars;  10  electric  and  4  steam 
locomotives;  valuable  passenger  terminal  and  office  build- 
ing in  the  heart  of  Spokane  and  freight  terminal  between 
the  terminals  of  the  Great  Northern  and  Northern  Pacific 
railroads,  and  has  physical  connection  with  all  railroads 
entering  Spokane.  Also  owns  a  hydro-electric  plant  9  miles 
below  Spokane,  capable  of  developing  20,000  horsepower. 
The  company  owns  a  franchise  to  sell  electric  light  and 
power  in  Spokane. 


Outstanding 

$  6,409,100 

10,000,000 

3,913,000 
and  North- 


1888 


1914 


American  Real  Estate  Company 

THIS  Company  has  been  one  of  the  leading  factors  in  the  development  of  New  York  real  estate. 
Its  operations  during  the  twenty-six  years  of  its  existence  have  been  in  sections  now  marked 
by  prosperity,  activity  and  permanence.     It  has  operated  extensively  along  rapid  transit  lines 
in  the  northern  part  of  New  York  City  and  in  the  city  of  Yonkers,  immediately  adjoining 
New  York  City  on  the  north.     It  has  acquired  and  holds  for  investment  many  high  grade  business 
and  apartment  buildings  in  the  best  sections  of  Manhattan,  New  York  City. 

The  Company's  business  has  been  conducted  for  more  than  a  quarter  of  a  century  by  experts  in 
the  New  York  real  estate  field.  From  a  foundation  capital  of  $100,000  it  has  grown  steadily  and  con- 
sistently until  now  it  has  net  assets  exceeding  $17,000,000,  with  a  capital  and  surplus  of  $3,247,789.13. 

In  the  further  extension  of  its  business  of  real  estate  operation  (to  which  it  is  limited  by  charter) 
along  these  well  established  and  conservative  lines,  the  Company  offers  its  6%  Bonds  to  investors. 

These  b%  Bonds  are  issued  in  Coupon  form  in  denominations  of  $100,  $500,  $1000  and  up- 
ward, and  mature  in  ten  years.  The  i>%  interest  is  payable  by  coupons  semi-annually.  They  provide 
an  attractive  investment  for  small  or  large  amounts,  and  offer  a  most  satisfactory  combination  of  the 
three  essentials  of  an  investment — safety,  yield  and  cash  convertibility. 

Descriptive  booklets  and  Twenty-sixth  Annual  Statement  will  be  sent  on  request. 

^meriran  $bU  flfetafr  (font  p \my 


527  Fifth  Avenue 


NEW  YORK 


Attention  is  called  to  the 
announcement  on  page  II 


146 


CORPORATIONS 


Earnings. 

Deficit  reduced  from  $131,701  in  1911  to  $78,529  in  1913. 

Operating  ratio  reduced  in  the  same  period  from  68.22  per 

cent  to  68.06  per  cent. 

Officers. 

L.  C.  Gilman,  Pres.  W.  F.  Turner,  Comptroller. 

Waldo   G.   Paine,  V.    P.  W.  D.  Scott,  Gen.  Mgr. 

W.   G.  Davidson,  Sec.  &  Treas. 

Spring  Valley  Water  Co.,  San  Francisco,  Cat. 

The  company  furnishes  water  to  the  city  of  San  Fran- 
cisco. 

Capitalization. 

Stocks                                                     Authorized  Outstanding 

Common     $28,000,000  $28,000,000 

Funded  Debt — 

Bonds    28,000.000  21,277,000 

Notes,  2  yr.  5%%.  due  Dec,  1915 2,000,000  1,000,000 

Physical  Property. 
The  company  owns  14  pumping  plants  in  San  Francisco, 
San  Mateo  and  Alameda  counties,  of  a  capacity  of  75,000,000 
gallons;  eight  city  distributing  reservoirs  and  3  tanks. 
City  system  consists  of  460  miles  of  pipe  and  63,000  service 
connections.  Properties  in  San  Francisco,  San  Mateo, 
Alameda,  Santa  Clara  and  San  Benito  counties,  102,082 
acres,  and  riparian  rights  on  51,558  acres.  Reservoirs  have 
a  capacity  of  32,100,000,000  gallons.  The  system,  as  at 
present  developed,  delivers  approximately  40,000,000  gallons 
daily.  Real  estate  water  rights  were  appraised  January 
1,  1914,  $65,840,485.  On  December  31,  1913,  a  condemna- 
tion suit  was  commenced  by  the  city  of  San  Francisco  to 
acquire  the  greater  portion  of  the  property  owned  by  the 
company. 

Earnings. 
Gross  "Net 

Year  Revenue  Earnings  Interest  Balance 

1910    $2,898,963  $1,798,898  $714,360  $1,084,568 

1911    2,993,336  1,936,149  714,360  1,221,789 

1912     3,195,377  1,197.547  756,304  2,149,856 

1913    3,400,680  2.149,856  714,971  1,434,885 

"Net  earnings  are  shown  after  deducting  operating  expenses 

and  taxes. 

Officers. 

W.   H.   Bourn,  Pres.  J.   S.   Behan,  Sec. 

A.    H.    Payson,   Vice-Pres.  T.   M.    Edmunds,  Asst.   Sec. 

S.   P.   Eastman,  V.-P.   &  Gl.  Mgr.        Benj.    Bangs  Treas. 

Standard  Gas  &  Electric  Company  Delaware 

The  Standard  Gas  &  Electric  Company  owns  stocks, 
bonds  and  other  securities  of  public  utility  corporations 
serving  over  200  cities  and  towns,  with  a  total  popula- 
tion of  approximately  1,656,000,  situated  in  the  states  of 
Minnesota,  Kentucky,  Washington,  Oklahoma,  Alabama, 
Colorado,  California,  Arkansas,  Iowa,  North  Dakota, 
Oregon,  Illinois,  Montana,  Idaho  and  Wisconsin. 
Subsidiary  Companies. 

Ark.  V.  Ry.Lt.&  Pr.Co.  Muskogee    Gas  ft  EI.  Co.  *San  Diego  Consol.  Gas 
Enid  Elec.  &  Gas  Co.      No.Ida.S  Mont.  Pr.Co.  ft    Elec.   Co. 

Everett  Gas  Company.     North.   States  Pr.  Co.  Southwestern  Gen'l  Gas 
Ft.  Smith  Lt.  &  Tr.  Co.  Okla.   Gas  ft  El.   Co.  Co. 

Louisville    Gas  &  El.  Co.  Consumers  Power  Co.  Tacoma  Gas  Company. 

Miss.  V.  Gas  &  El.  Co.  Ottumwa  Ry.  &  Lt.  Co.  "Western  States  Gas  & 
Mobile   Electric   Co.         Olympia   Gas   Co.  Electric  Co. 

"See  information  below. 

Capitalization. 

Stocks —  Authorized       Outstanding 

$11,784,950  preferred   (8%) $30,000,000  $11,784,950 

Par  $50. 
Common     15,000,000  9,343,150 

Funded  Debt — 
Conv.  S.  F.  1926  bonds  (6  per  cent)..    30,000.000  9.969,500 

Coll.  Trust  Gold  Notes  (6  per  cent)..      3.000,000  2,446,000 

Physical  Property. 

All  of  the  public  utilities  in  which  Sandard  Gas  &  Elec- 
tric Company  owns  stocks,  bonds  and  other  securities  have 
been  thoroughly  maintained  in  first-class  physical  condi- 
tion. They  operate  under  satisfactory  franchises,  serving 
communities  which  in  the  past  have  shown  favorable  in- 
creases in  population,  business  importance  and  financial 
stability  and  offer  every  expectation  of  prosperous  growth 
in  the  future.  These  companies  operate  in  widely  sepa- 
rated parts  of  the  country  and  variously  serve  cities  and 
towns  of  greatly  diversified  commercial  and  manufactur- 
ing interest. 

Earnings. 

i*ear  Gross  Revenue        *Net  Earnings 

1911     $11,939,999  $5,727,794 

1912     13,194,804  6,029,583 

1913     14,060,442  6.316.448 

*Net  earnings  are  shown  after  deducting  operating  expenses 

and   taxes. 

Dividends. 

1910  1911        1912      1913        1914 

Preferred     (per    cent) S%1         7%»  8  83  6* 

1  Initial  dividend,  1%   per  cent,  Sept.  15,  1910. 
'  Initial   dividend,  2  per  cent.   Sept.   15.   1911. 

3  Dividend  last  6  months  1913  and  1914,  payable  in  scrip, 
due  Sept,  1922,  Interest  6  per  cent. 

4  Nine  months. 


Statistics. 


1913 
Electric    Consumers. .  .149,225 

Gas    Consumers 132,474 

Water  Consumers....  2,290 
Steam  Consumers....  883 
Telephone  Subscribers.      2,660 


1912 

130,946 

129,158 

3,145 

826 

2,473 


1911  1910 

110,166  88,582 

120,897  106,534 

2,702  1,626 

835  755 

2.138  2,385 


Totals    287,532  266,548  236,738  199,882 

1913                   1912  1911  1910 
Kwt.  Hour 

Output        339.977,796       291,366,636  251,728,523  210,841,243 

Motors    ....              18,784                 15,890  13,069  9,758 
H.  P.  Pr.  in 

Motors..             160,856              133,328  108,793  84,254 

16  c.  p.  Eq.         2,727,970           2,441,758  2,082.932  1,658,576 

City    Arcs..              10,854                 10,146  9,529  8,816 

City    Inc's.               12,761                   9,390  6,996  5,478 
Gas  Output 

(cu.  ft.)   9,122,718,102   9,824,253,465   9,316,453,927   8,108,788,459 
St.   Railway 

Receipts..    $828,168.25       $801,963.25       $757,204,50     $704,639.01 

Officers. 


II.  M.  Byllesby,  Pres. 

J.  J.  O'Brien,  Vice-Pres. 

F.  C.  Gordon,  Vice-Pres. 

M.  A.  Morrison,  Sec.  &  Asst.  Treas. 


Herbert  List,  Asst.   Seretary. 
R.  J.  Graf,  Treas.  &  Asst.  Sec. 
Herbert  List,  Asst.  Treasurer. 


WESTERN    STATES   GAS   &    ELECTRIC    COMPANY 

(Delaware) 

(The  Company  owns  entire  capital  stock  of  Western 
States  Gas  &  Electric  Co.  of  California.) 
This  Company  operates  gas  works  and  steam  electric 
power  house  with  distributing  systems  in  Eureka,  hydro- 
electric power  plant  on  Trinity  River,  near  Junction  City, 
and  electric  distributing  systems  in  Areata,  Blue  Lake, 
Fields  Landing  and  Fortuna ;  electric  distributing  sys- 
tems in  Richmond;  gas  works  and  steam  electric  power 
house  with  distributing  systems  in  Stockton,  and  electric 
distributing  systems  in  Elk  Grove,  Florin,  Gait,  Lockeford, 
etc.;  also  hydro-electric  power  plant  on  American  River 
near  Placerville  and  electric  distributing  system  in 
Placerville,  and  appurtenant  transmission  lines  and 
other  properties.     Population   served  app.   78,750. 

Capitalization. 

Stocks                                                          Authorized  Outstanding 

Conv.    cumulative,    pref.    (7%) $10,000,000  $2,125,000 

Common     5,000,000  3,503,000 

Funded  Debt — 

Bonds 10,000,000  4,737,500 

Physical    Property. 

Hydro-electric  developments  include  4,500  K.  W. ;  steam 

electric  stations  5,250  K.  W.     1,118,000  cu.  ft.  holders  gas. 

Company   at   Stockton   owns   16   gas   wells   and   supplies 

mixture  of  artificial  and  natural  gas.     Richmond  division 

purchases  electric  energy  at  wholesale  from  Pacific  Gas 

&    Electric   Company   and    distributes   through   Richmond 

and  vicinity. 

Statistics. 

1910  1911  1912  1913 

Miles  of  Pole  line 563  635  811  923 

Electric  customers    6,573  10,622  12,893  15,019 

Motor    load    h.    p 10,737  12,382  15,070  21,581 

Miles  gas  mains    65  102  123  123 

Gas   customers    5,239  5,940  6,862  7,463 

Earnings. 

Gross  *Net 

Year  Revenue  Earnings  Interest  Balance 

1910     $750,696  $417,815  $143,429  $274,385 

1911     866,399  498,067  209.982  288,085 

1912     978, S62  515,786  196.479  319.307 

1913    1,085,647  488,764  259,149  229,615 

*Net  earnings  are  shown  after  deducting  operating  expenses 

and  taxes. 

Officers. 


H.   M.   Byllesby,   President. 
F.   C.   Gordon,   Vice-Pres. 
Otto  E.  Osthoff,  Vice-Pres. 


E.  J.  Graf,  Sec.  ft  Treas. 

M.  A.  Morrison,  Asst.   S.  ft  T. 

Herbert   List,   Asst.    S.   &  T. 


SAN  DIEGO  CONSOLIDATED  GAS  &  ELECTRIC  CO. 

This  Company  operates  a  gas  and  electric  plant 
in  city  of  San  Diego  and  serves  both  gas  and 
electric  energy  to  the  following:  San  Diego,  La  Jolla, 
Pacific  Beach,  Old  Town,  Ocean  Beach  and  Point 
Loma,  Chula  Vista,  East  San  Diego,  Encanto,  La  Mesa, 
Lemon  Grove,  Normal  Heights  and  National  City;  elec- 
tricity only  to  Bostonia,  El  Cajon,  Foster,  Imperial  Beach 
and  South  San  Diego,  Lakeside  and  Lakeview,  Nestor, 
Palm  Station,  Otay,  Santee,  San  Ysidro  and  Helix,  Del 
Mar;    gas  only  to  Coronado. 

Capitalization. 

Stocks —  Authorized     Outstanding 

Preferred     $    500,000  None 

Common     3.000,000  $2,715,000 

All  common  owned  by  Standard  Gas  &  Electric  Co. 

Funded  Debt — 
Bonds    $9,000,000  $4,199,000 

Physical   Property. 
Gas — Holder   capacity,   2,650,000   cu.   ft.;    annual  output, 
733,293,000   cu.  ft.     Miles   of   mains,   420;    combined   daily 
capacity  water  and  oil  gas  plants,  4,375,000. 


CORPORATIONS 


147 


Electric— 8,470  K.  W.  power  station;  12,350  H.  P.  in 
engines  and  turbines;  5,494  H.  P.  in  Babcock  &  Wilcox 
boilers;  miles  of  pole  line,  401;  annual  output,  18,931,466 
K.  W.  H,  Oil  is  used  as  fuel,  and  boilers  are  equipped 
with  grates  for  burning  lamp  black,  being  a  by-product 
of  gas  plant.  During  present  year  company  will  install 
additional  4,000  K.  W.  General  Electric  turbo-generating 
unit. 

The  charter  of  the  Company  for  both  gas  and  electric 
lighting  is  for  a  period  of  50  years  from  March  29,  1897. 

Statistics. 

1910 

Electric    consumers 7,139 

Gas  consumers    10,155 

City   arcs    369 

Motors    648 

H.  P.  motors    2,835 

Earnings. 

Gross  *Net 

Year  Revenue         Earnings 

1910    S    548.061  $277,314 

1911     753,820  387,714 

1912    1,019,471  511,767 

1913    1,326,970  625,768 


1911 

9.885 

13,061 

425 

904 

5,024 


1912 

14,321 

17,864 

621 

1,284 

8,117 


1913 
17,199 
20,348 
707 
1,633 
13,678 


Interest 

?   91,028 

111,573 

165,140 

223,129 


Balance 

$186,286 

276,141 

346,627 

402,639 

♦Net  earnings  are  shown  after  deducting  operating  expenses 

and  taxes. 

Dividends. 

1905  1906  1907  190S   1909  1910  1911  1912  1913  1914 

Preferred ..  1  %        5         5         5     6  &        7  7  None  outstanding 

Common 5  6  >4  7         7       &%        10 

Officers. 

H.  H.  Jones,  Pres.  A.    H.    Sweet,    Vice-Pres. 

H.   M.   Byllesby,  Vice-Pres.  M.   B.   Fowler,   Sec.  &  Treas. 

F.   C.    Gordon,    Vice-Pres.  R.  J.  Graf,  Asst.  T.  &  S. 

Herbert  List,  Asst.  T.  &  S. 


TACOMA   GAS  COMPANY. 
Capitalization. 
Stocks —  Authorized. 

Preferred   1%   cumulative $5,000,000 

Common     2,500,000 

Funded  Debt — 
Bonds     3,000,000 

EVERETT  GAS  COMPANY. 
Capitalization. 
Stocks —  Authorized. 

Preferred   7%   cumulative $1,000,000 

Common     1,000,000 

Funded  Debt — 
Bonds     2,000,000 


Outstanding. 

$    750,000 

1,550.000 

2,095,000 


Outstanding. 

$    310,000 

1,000,000 

762,000 


Standard  Oil  Co.  of  California,  San  Francisco,  Cat. 
The  company  operates  extensive  oil  producing  properties 
in  Southern  California,  pipe  lines,  three  refineries,  can 
plant,  a  fleet  of  steamers  and  barges,  and  other  equipment. 
It  distributes  and  sells  petroleum  and  its  products;  operat- 
ing 135  stations  in  California,  '21  in  Oregon,  42  in  Wash- 
ington, 14  in  Arizona,  7  in  Nevada,  6  in  Alaska  and  1  In 
the  Hawaiian  Islands,  9  additional  stations  in  course  of 
construction. 

Capitalization. 

Stocks —  Authorized       Outstanding 

Common     $100,000,000  $49,814,000 

Physical  Property. 
The  company  owns  extensive  oil  producing  properties 
with  an  average  daily  production  of  26,575  barrels,  in  the 
Kern  River  district  and  had  recently  acquired  the  holdings 
of  the  Murphy  Oil  Co.  in  the  Fullerton  field.  It  owns 
refineries  at  Richmond,  El  Segundo  and  Bakersfield,  with 
daily  capacity  of  65,000,  20,000  and  25,000  barrels  re- 
spectively, and  a  can  manufacturing  plant  with  daily  capa- 
city of  30,000  one  and  five-gallon  cans.  The  company  owns 
386  miles  of  pipe  lines,  storage  tanks  and  other  equip- 
ment; a  fleet  of  steamers  as  follows:  coastwise  and  for- 
eign, 9  steamers  (American  flag),  aggregate  capacity  275,- 
000  barrels;  3  barges,  aggregate  capacity,  95,000  barrels, 
and  13  river  and  harbor  boats  with  aggregate  capacity  of 
35,350  barrels.  On  December  31,  1913,  the  total  plant  in- 
vestment of  the  company  was  $50,268,456.  Its  inventories 
amounted  to  $21,724,390,  which  included  24,310,310  barrels 
of  crude  oil  in  storage;  the  balance  being  stocks  of  all 
products  on  hand  in  its  various  sales  stations. 

Dividends. 
•08         '09      '10       '11       '12        '13         '14 

Per   cent    10         46         2         0         10       "10         10 

Officers. 
D.  G.  Scofield,  Pres.  F.   H.   Hillman,  Vice-Pres. 

K.    R.    Kingsbury,  Vice-Pres.  W.   S.    Miller,   Vice-Pres. 

VV.   S.    Rheens,  Vice-Pres.  R.  J.  Hanna,  Treas. 

U.  il.  Storey,  Sec 

Union  Oil  Co.  of  California,  Los  Angeles,  Cat. 

The    company    is    engaged    in    producing,    transporting, 

manufacturing   and    marketing   crude   petroleum    and    its 


SEATTLE'S  rapid  and  sustained  growth  in 
population  and  in  commercial  and  indus- 
trial progress  is  accurately  reflected  in  the  de- 
velopment of  the  artificial  gas  business.  Since 
1904,  gas  has  been  supplied  to  this  city  by  the 
Seattle  Lighting  Company,  and  during  that 
time  the  gross  revenues  of  the  company  have 
increased  more  than  fourfold.  Today  the  an- 
nual revenues  are  approximately  one  million 
dollars,  and  showing  steady  increase,  notwith- 
standing the  low  price  at  which  gas  is  sold,  the 
rate  schedule  beginning  at  $1.00  for  the  first 
5,000  cubic  feet  monthly  consumption  and 
going  as  low  as  60  cents  on  larger  quantities 
for  industrial  purposes. 

These  rates,  put  in  force  a  little  over  a  year 
ago,  have  had  the  effect  of  stimulating  the  Bales 
oi  gas  very  materially  and  contributing  to  the 
general  industrial  development  of  the  city. 

It  is  fair  to  say  that  no  city  in  America,  or 
elsewhere,  possesses  a  more  complete,  more  mod- 
ern or  more  efficient  gas-making  establishment 
than  the  Lake  Union  Station  of  the  Seattle 
Lighting  Company.  Tt  is  generally  believed 
that  almost  no  other  city  has  so  large  a  mileage 
of  mains  for  the  population  served.  In  both 
respects,  therefore,  the  gas  company  is  admir- 


ably situated  to  meet  and  take  care  of  the  con- 
tinued growth  which  all  authorities  unite  in 
asserting  is  assured. 

The  accompanying  photograph  gives  an  ex- 
cellent idea  of  the  extent  and  capacity  of  the 
Lake  Union  works,  though  the  large  retort 
house,  the  principal  building  of  the  group,  is 
not  shown.  This  plant  contains  complete  coal 
gas  and  water  gas  equipment,  and  within  the 
past  year  there  has  been  added  to  it,  necessi- 
tated by  the  growing  demand  for  gas  and  the 
expected  large  increase  in  population  during 
the  next  few  years,  a  chamber-oven  coking 
plant  of  the  most  modern  and  most  efficient 
typo  known,  built  on  the  lines  of  the  Klonne 
ovens,  a  German  system.  The  builders  are 
the  National  Chamber  Oven  Co.,  of  Cincin- 
nati, Ohio. 

Besides  giving  the  gas  company  full  capacity  to 
meet  any  emergency,  this  addition  to  its  works  will 
give  to  Seattle  a  supply  of  home-manufactured  metal- 
lurgical coke  adapted  to  the  most  exacting  demands 
of  domestic  and  Industrial  use.  It  is  the  intention 
of  the  company  to  give  such  close  attention  to  the 
selection  of  coals  for  use  in  this  plant  that  the  coke 
by-product  will  be  superior,  for  the  various  purposes 
for  which  it  will  be  used  along  the  coast,  to  any  coke 
that  can  be  imported  and  sold  here. 

Adv. 


Attention   is  called  to  the 
announcement  on  page  11 


148 


CORPORATIONS 


products  throughout  a  large  part  of  the  Pacific  Coast  ter- 
ritory of  the  United  States,  Canada  and  South  America. 
Subsidiary  Companies. 

Mis.  Tr.   &  Ref.  Co.      Union  S.  S.  Co.  Prod.Trans.  Co. 

Union  Trans.  Co.  United  S.  S.  Co.  Union  Tool  Co. 

Newlove  Oil  Co.  Claremont  Oil  Co.  So.  Cal.  I.  &  S.  Co. 

Outer   Harbor   Dock   and   Wharf   Co. 
S'ta  Maria  O.  &  G.  Co. 
Capitalization. 

Stocks —  Authorized     Outstanding 

Common     $50,000,000  $31,312,900 

Bonds     20,000,000  8,348,000 

Notes,  collateral  trust  6s 4,000,000  3,095,000 

Physical  Property. 

Figures  are  as  of  June  30,  1914. 

The  company  owns  oil  lands  aggregating  slightly  more 
than  240,000  acres,  but  a  small  fraction  of  which  is  being 
utilized;  319  wells  being  in  active  production.  These  lands 
with  leases  and  mineral  rights  owned  by  the  company  are 
valued  at  122,831,758;  the  wells,  development  and  equip- 
ment at  $22,278,822.  The  company  owns  or  controls  more 
than  718  miles  of  pipe  line  extending  from  three  tidewater 
ports  to  the  four  great  oil-producing  sections  of  California. 
Its  storage  system  has  a  capacity  of  13,043,450  barrels. 
The  pipe  lines  and  storage  systems  owned  are  valued  at 
$4,338,721.  The  company  owns  a  large  fleet  of  vessels  with 
a  total  carrying  capacity  of  over  500,000  barrels,  and  others 
are  in  course  of  construction.  The  fleet,  together  with  the 
tank  cars  owned  by  the  company,  are  valued  at  $3,159,730. 
The  company  owns  and  operates  four  modern  refineries 
and  a  compressor  plant  valued  at  $2,639,355,  and  its  market 
Stations  are  valued  at  $3,617,381.90.  The  company  owns 
or  controls  24  subsidiary  companies,  these  holdings  aggre- 
gate $13,213,179.  The  inventory  of  crude  oil  and  refined 
stocks  on  hand  totals  $5,666,932. 

Sources  of  Gross  Revenue. 

Crude  oil         Refined  oil 
Tear  S.il   s  Sales  Total 

1910     $7,376,840  $3,218,049  $10,594,889 

1911     10,109,563  5,746,310  15,855,873 

1912     11,600,261  6,563,293  18,163,554 

1913     13,494,240  6,449,201  19,943,441 

Officers. 

W.   L.  Stewart,  Pres.  E.  W.  Clark,  V.  P. 

Alex.   Sclater,  V.   Pi  Giles  Kellogg,  Sec. 

John  Garrigues,  Treas. 


Gross 
Year  Profit 

1910    $5,162,092 

1911    4,227,093 

1912    5,329,131 

1913    4,803,537 


Balance 

$3,307,146 
2,072,490 
2,839,738 
3,597,512 


UNION   OIL   CO.— Continued. 

Earnings. 

*Net 

Earnings  Interest 

$3,625,133  $317,987 

2,438,401  365,911 

3,511,338  671,599 

4,246,254  648,742 
•Net  earnings  are  shown  after  deducting  operating  expenses, 
and  taxes. 

United  Railroads  of  San  Francisco, 

San  Francisco,  Cal. 
The  company  operates  the  entire  street  railway  system 
of  San  Francisco,  with  the  exception  of  the  California 
Street  Cable  Railway  Company  and  the  Municipal  Railway, 
the  latter  being  owned  by  the  city.  The  company  also 
operates  a  suburban  line  to  San  Mateo,  San  Mateo  County. 

Capitalization. 

*Stock —  Authorized 

1st  Preferred  (7%  cum.) $  5,000,000 

Preferred  (4%  cum.) 20,000,000 

Common     18,800,000 

Funded  Debt — 

Bonds    f60,725,000 

Equip,   trust  cert $700,000 

5  %   gold  notes   1,000,000 

7%  notes  to  Cal.  Ry.  &  P.  Co 2,000,000 

•All  stock  controlled  by  California  Railway  &  Power  Co. 

tRetired  and  cancelled,  $4,055,000. 

JRetired  and   cancelled,    $260,000. 

§Includes   $151,000   held  as   sinking  fund   investments. 

Physical  Property. 
The  company  controls  and  operates  260.02  miles  of  elec- 
tric street  and  suburban  railway  in  San  Francisco  and  San 
Mateo  counties,  all  of  which  is  overhead  trolley.  It  also 
owns  and  operates  14.70  miles  of  cable  line  on  Castro, 
Powell,  Sacramento,  Clay,  Washington  and  Jackson  streets, 
San  Francisco.  Total  274.72  miles  of  single  track.  Cars 
— electric  passenger  703,  cable  passenger  57,  and  work  76; 
total  836. 


Outstanding 

$   5,000,000 

20,000,000 

17,948,600 

§36,474,000 
440,000 
1,000,000 
2,000,000 


Earnings. 

•Net 
Earnings  Interest  Balance 

$3,133,525  $2,042,410  $1,091,115 

3,443,792  2,095,213  1,348,579 

3,878,416  2,071,099  1,807,317 

3,559,768  2,036,518  1,523,250 

•Net  earnings  are  shown  after  deducting  operating  expenses 
and  taxes. 

Officers. 

J.   W.   Lilienthal,   Pres.  A.    M.    Dahler,  Treas. 

Chas.  N.  Black,  V.-P.  &  Gl.  Mgr.         Geo.  B.  Willcutt,  Sec.  &  Comp. 
Thornwell  Mullaly,  Asst.  to  Pres. 


Gross 
Year  Revenue 

1910     $7,862,796 

1911     8,150,763 

1912     8,756,998 

1913     8.723,464 


Merchants  Exchange  Bldg., 
San  Francisco,  Cal. 


60  Broadway, 
New  York,  N.Y. 


Byrne  &  McDonnell 

Members 

New  York  Stock  Exchange 

San  Francisco  Stock 
and  Bond  Exchange 

Gov't  Municipal  Railroad  and 
Public  Utility  Bonds. 

Pacific  Coast  Securities  a  spe- 
cialty. 

Correspondence  invited. 

Private  wire  Coast  to  Coast. 


Sherman  R.  Hall 


C.  H.  Lewis 


Hall  &  Lewis 


Investment  Bonds 
Local  Securities 


PORTLAND,  OREGON 

Lewis  Building 


Attention  is  called  to  the 
announcement  on  page  Ji 


CORPORATIONS 


149 


United  Railways  Investment  Co.,  Jersev  OUg. 

The  company  is  a  holding  company  and  does  not  operate 
any  properties. 

Subsidiary  Companies. 

Philadelphia  Co.  United  R.   R.'s  of  San  Francisco. 

California  Ry.  &  Power  Co.  San  Francisco  Electric  Railways. 

Sierra  &  San  Francisco  Power  Co.        The  Railroads  &  Power  Develop- 
Coast  Valleys  Gas  &  Electric  Co.  ment  Co. 

Capitalization. 

Stocks —  Authorized      Outstanding 

Preferred    (5%   cum.)    $25,000,000  $16,000,000 

Dividend  certificates   1,462,500 

Common     31,000,000  20,400,000 

Funded  Debt — 

Bonds 26.250,000  *18,960,000 

Notes,   6   per  cent  sr.,  "08 3,500,000  1,100,000 

•$752,000  Coll.  Trust  5s  held  by  trustee  in  sinking  fund. 
Physical    Property. 
The  company  owns  $24,200,000  of  the  $39,043,000  com- 
mon stock  of  the  Philadelphia  Co.,  located  at  Pittsburgh. 
"It  owns,  directly  or  indirectly,  all  the  preferred  and  com- 
mon stocks  of  its  California  subsidiaries.    For  the  purposes 
of  this  issue  the  operating  California  companies  will  be 
separately  considered. 

Earnings. 


Gross 

Year 

Revenue 

1911     

$2,136,536 

1912    

2.260,250 

1913    

2,134.224 

•Net 

Earnings 

$2,065,999 

2.181.1S2 

2,070,497 


Interest 

$1,225,172 

1,191,537 

1,164,159 


Balance 

JSIH.M'T 

989,645 
906,338 


•Net  earnings  are  shown  after  deducting  operating  expenses 
and  taxes. 

Officers. 

Mason  B.  Starring,  Pres. 
Geo.  W.  Bacon,  Vice-Pres. 
Beni.  S.  Guinness,  Treas. 

P.  M. 


W.  T.  Duane,  Sec'y  &  Asst.  Treas. 
M.  V.  R.  Weyant,  Asst.  Sec'y  and 
Asst.  Treas. 
Hoskins,  Auditor. 

U.  S.  Smelting,  Refining  and  Mining  Co.,  Boston. 
This  company  and  its  subsidiaries  are  engaged  in  min- 
ing copper,  lead,  gold  and  silver  ores  on  their  various 
properties  in  Utah,  Nevada,  California  and  Mexico.  They 
operate  smelters,  refineries  and  reduction  plants;  a  large 
lime  quarry  and  coal  mines  in  Utah;  and  are  building  a 
railroad  to  provide  outlet  for  their  product  to  the  lines 
of  the  Denver  &  Rio  Grande  and  the  San  Pedro  route. 
Subsidiary  Companies. 

United  States  Metals  Refining  Co.        Mammoth  Copper  Mining  Co. 
United  States  Smelting  Co.  Gold  Road  Mines  Co. 


United  States  Mining  Co.  Needles  Mining  and  Smelting  Co. 

Real  del  Monte  y  Pachuca  Mines  Richmond  Eureka  Mining  Co. 

Capitalization. 
Stocks —  Authorized      Outstanding 

Preferred   (7%   cum.)    $37,000,000         $24,313,725 

Common     37,500.000  17,553,787 

Notes,  4-year  gold,  due  1918 6,000,000  4,000,000 

Utah  Co.  6%  coll.  Tr.  due  1917 10,000,000  10,000,000 

Physical    Property. 

The  company  and  subdiaries  own  a  large  group  of  mines, 
a  lime  quarry  and  smelter  at  Bingham,  the  Centennial 
Eureka  Mine  at  East  Tintic,  the  Mammoth  Mine  and 
Smelter  at  Kennet,  Cal.,  a  lead  refinery  at  Chicago,  and 
a  controlling  interest  in  the  U.  S.  Metals  refinery  at 
Chrome,  N.  J.  The  company  owns  large  coal  properties 
in  Utah  aggregating  11,226  acres  of  which  7,526  acres  are 
coal  lands,  which  in  1913,  produced  869,522  tons  of  coal. 
The  company  is  now  constructing  80  miles  of  railroad  con- 
necting these  fields  with  the  D.  &  R.  G.  and  U.  P.  systems. 
The  company  owns  the  entire  capital  stock  of  its  subsi- 
diary companies  with  the  exception  of  $1,031,324  par  value. 
Dividend   Record. 

April,  1906,  to  October,  1914 — 

Preferred    $14,667,4  4  4.75 

Common    6,362,ls9.1S 

Officers. 


VV.  G.  Sharp,  Pres.  &  Ch'nm  of  Bd. 
S.    J.    Jennings,    Vice-Pres. 
C.   G.   Rice,   Vice-Pres. 


Frederick  Lyon,  Vice-Pres. 
F.   Winthrop   Batchelder,   Sec'y   & 
Treas. 


Washington  Water  Power  Co.,  Spokane,  Wash. 

The  company  operates  a  street  railway  system  in  Spo- 
kane, Wash.,  with  connecting  suburban  and  interurban 
lines.  It  owns  and  operates  the  electric  light  and  power 
systems  in  30  towns  in  Washington,  including  Spokane, 
and  in  4  towns  In  Idaho.  In  addition  it  furnishes  the 
power  to  systems  not  owned  by  it  in  4  towns  In  Washing- 
ton, and  in  11  towns  in  Idaho. 

Capitalization. 

Stocks —  Authorized. 

Common     $20,000,000 

Funded  Debt —  .. „„„ 

Bonds     15,000,000 

Notes    

Physical    Property. 

The  company's  railway  system  consists  of  112.30  miles 
of  track.    Its  city  lines  occupy  49.51  miles  of  streets.    The 


Outstanding. 
$15,490,000 

5,073,000 
2.274,000 


John  Perrin 
Daniel  K.  Drake 
James  Sheldon  Riley 


Perrin,  Drake  &  Riley 

(Incorporated ) 
210  West  Seventh  Street 

(I.  N.  Van  Nuys  Building) 

Los  Angeles 


California  Municipal  and 
Corporation  Bonds  have 

Higher   Income  Yield 

than  Eastern  bonds  of  equal  grade 


Special  prices  on  entire  issues  of  Municipals 
(in  amounts  from  $10,000  upwards) 

Ask  for  our  offerings 


We  are  In  the  market  at  all 
times  for  entire  issues  of 
Municipal,  Railroad,  Public 
Service  Corporation  and 
Timber  Bonds  and  invite  cor- 
respondence from  those  in- 
terested in  the  purchase  or 
sale  of  such  securities. 


DEVITT.  TREMBLE  & 
COMPANY 


Investment  Bonds 


Ford  Bldg. 
DETROIT 


lirst  National  Bank  Bldg. 
CHICAGO 


Morris  Bldg. 
PHILADELPHIA 


Attention   is  called   to  the 
announcement  on  page  n 


150 


CORPORATIONS 


company  owns  and  operates  627  miles  of  transmission 
lines  and  the  following  hydro-electric  plants:  Spokane, 
12,000  H.  P.;  Post  Falls,  Idaho,  15,000  H.  P.;  Little  Falls, 
Wash.,  27,000  H.  P.  All  of  its  water  power  is  on  the  Spo- 
kane River.  It  owns  a  19,000  H.  P.  steam  turbine  plant 
at  Spokane  and  is  constructing  an  additional  hydro-elec- 
tric plant  of  66,000  H.  P.  at  Long  Lake,  Wash.  The  com- 
pany's franchises  for  light  and  power  business  run  to  1944 
and  the  street  railway  franchises  run  for  an  average  of 
20  years. 

Statistics. 

Electric  Light  &  Power  System. 

Comparative    Statement. 


Inc. 
over 
1912 
6% 

4f 


1907      1908      1909      1910      1911      1912      1913 

Mai.  Station  Load,  H.  P 22,400  26,800  30.200  34.873  37,155  38.312  40,521 

H.  P.  of  motors  in  Spokane..  6.S63    8,506    9.SS0  15,692  16.224  17,970  18,609 

H.  P.  of  mot.  on  trans,  lines.10.569  14.176  16,652  17,824  18,735  20.992  25.244     20% 

•Number    of    accounts 10,330  12,684  15,584  18.080  19,105  20,222  22,640     12% 

•Number  of  meters   In  use... 10,503  12,843  15,502  17.852  18.850  19.965  22,244     11% 

•Not  Including  meters  and  accounts  in  towns  recently  acquired. 
Earnings. 


Gross 
Year.  Revenue. 

1910     $3,155,223 

1911     3,264,158 

1912     3,170,246 

1913     2,914, 950t 


•Net 
Earnings.  Interest.  Balance. 

$1,476,683  $241,144        $1,235,539 

1.611,177  312,494  1,298,683 

1,567,892  276,648  1,291,244 

1,623,277  259.219  1,363,958 

tThe  apparent  loss  in  gross  due  to  change  in  methods  of  ac- 
counting. 

•Net  earnings  are  shown  after  deducting  operating  expenses 
and  taxes. 

Dividends. 

1905  to  1910  inc.  7%  1911  to  1913  inc.  8% 

Officers. 

D.  L.  Huntington,  Pres.  Y.   M.   White,  Treas. 

H.    L.   Bleecker.    V.-P.  W.   J.    C.    Wakefield,   Ch.    of    Ex. 

C.  S.  MacCalla,  V.-P.  &  G.  Mgr.  Committee    &    V.-P. 

A.  F.  S.  Steele,  Sec'y. 

Weed  Lumber  Company,        San  Francisco,  Cat. 
The    company    is    engaged    in    logging    pine    timber    in 
Siskiyou   County,   Cal.,   and   in   the  manufacture  and   sale 
of  lumber,  sashes  and  doors,  boxes,  etc. 

Capitalization. 

Stocks —                                                      Authorized.  Outstanding. 
Common     $2,000,000  $1,950,000 

Funded  Debt — 
Bonds     1,200.000  850,000 


Physical  Property. 
The  company  owns  50,000  acres  of  timber  land  in  Siski- 
you county  with  670,245,884  ft.  of  standing  timber  which 
they  value  at  $1,675,615;  railroad  and  logging  equipment, 
and  3  mills  at  Weed,  California.  They  also  own  logged 
off  and  ranch  land  and  townsite  properties  aggregating 
$134,553.  Earnings. 

1913.  1912.  1911. 

Gross    earnings,    all    oper $501,506.43  $380,540.48   $322,853.04 

Less  int.,  taxes,  misc.  losses.   208,134.53     115,881.83     122,414.12 

Net  earn.,  exclus.  of  deprec. .$293,371.90  $264,658.65   $200,438.92 
Less  res.  for  plant  deprec. .      76,594.46        91,755.07        83,857.64 

Net   Earnings    $216,777.44   $172,903.58   $116,581.28 

Officers. 

G.    X.   Wendling,    Pres.  H.    Fleishhacker,    V.-P. 

S.   O.  Johnson,  V.-P.  H.    Nathan,    Sec'y    &    Treas. 

Yukon  Gold  Co.,  New  York,  N.  Y. 

The  company  is  engaged  in  the  mining  of  gold  by  dredg- 
ing,  hydraulic,   and   other  methods   of   operation   on   land 
owned  or  leased  in  Alaska  and  California. 
Capitalization. 

Stocks —  Authorized.        Outstanding. 

Common     $25,000,000  $17,500,000* 

•Controlled  by  Guggenheim  Exploration  Co. 

Physical  Property. 
The   company   owns    and    operates   hydraulic    properties 
in  the  Klondike  region  in  Alaska,  and  dredging  properties 
at  Dawson  and  Iditarod,  Alaska,  and  at  Oroville  and  on 
the  American  River  in  California. 
Earnings. 
Gross  *Net 

Year.  Revenue.        Earnings.        Dividend.        Balance. 

1911     $1,462,042        $1,316,733        $1,312,500  $4,233 

1912     2,721,419  1,072,592  1,050,000  22,592 

1913     2,583,837  1,130,300  1,050,000  60,300 

•Net  earnings  are  shown  after  deducting  operating  expenses 

and  taxes. 

Sources   of   Gross    Production. 

Dredges.        Hydraulics.         Miscel. 

1911     $2,671,845  $434,382  

1912     3,346,026  629,043  

1913     4.347,111  256,491  $185,800 

Officers. 

S.   R.   Guggenheim.    Pres.  C.   K.   Lipman,  Sec'y. 

Dan'l     Guggenheim,    V.-P.  Morris    Guggenheim,    Treas. 

O.   B.   Perry,  Gen'l    Mgr. 


The  Union  Bank  of 
Australia.  Limited 


ESTABLISHED  1837 


INCORPORATED  1880 


AUTHORIZED  AND  ISSUED  CAPITAL  £6,000,000 

Paid-up  Capital,  £2,000,000 1_      .,  _. ,  OCft  ... 

Reserve  Fund,      £1,960,000 (Together  £3,960,000 

Reserve  Liability  of  Proprietors  £4,000,000 

Total  Issued  Capital  and  Reserves  £7,960,000 


DIRECTORS: 

HENRY  P.  STURGIS,  Esq.,  Chairman 

CHARLES  A.  GALTON,  Esq. 
WILLIAM  O.  GILCHRIST.  Esq. 


ARTHTTt  P.  BLAKE.  Esq. 
CHARLES  E.  BRIGHT.  Esq..  C.  M.  G. 
The  Rt.  Hon.  THE  EARL  OF 

CHICHESTER. 
JOHN  DUnnSTOCN,  Esq. 
HUGH  1).  FLOWER.  Esq. 


WILLIAM  R.  MEWHURN,  E»q. 
The  Hon.  O.  T.  MILLS.  M.  P. 
CHARLES  PARISl  RY.  Esq. 
Sir  WESTBY  B.  PERCEVAL.  K.C.M.G. 


Head  Office:  71  CORNHILL,  LONDON,  EC. 


Manaaer-A  C.  WILLIS 


Assistant  Manager — W.  J.  ESSAME 


Branches  throughout  Australia  and  New  Zealand,  viz.: 

In  VICTORIA Melbourne  and  39  Branches. 

"  SOUTH   AUSTRALIA Adelaide  and   13 

"  NEW  SOUTH   WALES Sydney  and  36 

'•  WESTERN     AUSTRALIA Perth  and  22 

"  QUEENSLAND    Brisbane  and  20         " 

"  PAPUA Port     Moresby  —         " 

"  TASMANIA     Hobart  and     2 

"  NEW     ZEALAND Wellington  and  41         " 

173 

Drafts  upon  the  Branches  are  issued  by  the  Head  Office,  and 
may  also  be  obtained  from  the  Bank's  Agents  throughout 
England,    Scotland    and    Ireland. 

Commercial  and  Circular  Traveling  Credits  issued — available 
throughout    the    World. 

Telegraphic    Remittances   are   also   made. 

Bills  on  the  Australian  States  and  Dominion  of  New  Zealand 
are  purchased   or  sent   for  collection. 

Deposits  are  received  at  the  Head  Office  at  rates  of  interest 
and  for  periods  which  may  be  ascertained  on  application. 


WALKER'S 

Manual  of  California  Securities 


and 


Directory  of  Directors 
Price,  $4.00 

1914  Edition  Issued  July  27 


Walker's  Manual  of  California  Securities  is  in- 
valuable to  bankers,  bond  dealers,  brokers  and 
all  those  interested- in  California  securities.  It 
gives  particulars  of  the  bonded  debt  of  the  State 
of  California,  San  Francisco,  Oakland  and  Los 
Angeles,  with  full  particulars  of  interest  to  in- 
vestors of  the  leading  public  service  and  indus- 
trial corporations  operating  in  California,  San 
Francisco  Stock  and  Bond  Exchange  sales  each 
month  from  January  1,  1905,  to  April  30,  1914. 
The  Directory  of  Directors  gives  an  alphabetical 
list  of  all  the  directors  of  the  corporations  con- 
tained in  the  Manual  with  the  other  corporations 
of  which  they  are  directors.  It  is  the  only  man- 
ual published  entirely  devoted  to  California  cor- 
porations and  is  complete,  accurate  and  up  to 
date. 

Copies  will  be  sent  on  approval 
to  responsible  parties 

H.  D.  WALKER,  Editor  and  Publisher 

454  Montgomery  St.        SAN  FRANCISCO,  CAL. 


Attention  is  called  to  the 
announcement  on  page  II 


PUBLIC  SERVICE 
COMPANIES 


Pacific  Gas  and  Electric  Company 


445   SUTTER   STREET 
SAN    FRANCISCO,   CALIFORNIA 


A  Letter  from  the  Treasurer  to  One  of  Our  Stockholders 

Dear  Sir: 

In  your  letter  of  August  28th,  you  express  yourself  as  being  very  much  interested  in  our  offering  of  First  Pre- 
ferred Cumulative  6%  Stock,  and  have  asked  me  to  give  you  an  analysis  of  this  security  from  an  investor's  standpoint. 

As  a  purchaser  of  corporate  securities,  with  many  years  of  experience,  you  have  undoubtedly  trained  yourself 
to  look  for  certain  fundamental  requirements  in  deciding  whether  a  security  is  worthy  of  your  confidence.  I  be- 
lieve, therefore,  you  will  agree  with  me  that  every  cautious  investor  should  satisfy  himself  as  to  the  following  points 
which,  to  use  your  expression,  "constitute  the  essential  features  of  a  sound  and  conservative  investment." 

1st.  WELL  DEMONSTRATED  AND  INCREASING  EARNINGS  WHICH  SHOULD  BE 
NOT  ONLY  SUFFICIENT  TO  PAY  THE  ANNUAL  DIVIDENDS  ON  THE  SECURITY,  BUT 
SHOULD  HAVE  A  MARGIN  OF  SAFETY,  OVER  AND  ABOVE  THE  DIVIDEND  RE- 
QUIREMENTS, TO  INSURE  THE  REGULAR  PAYMENT  OF  THE  DIVIDENDS  UNDER 
ALL  CIRCUMSTANCES. 

The  annual  reports  of  the  Pacific  Gas  and  Electric  Company,  particularly  the  report  for  the  year  1913,  have 
made  the  earnings  of  the  Company  since  its  organization  in  1906  available  to  the  public  in  detail,  and,  for  the  past 
three  years,  over  the  certificate  of  independent  auditors,  namely  Messrs.  Price,  Waterhouse  &  Company,  certified 
public  accountants. 

The  following  statement,  which  is  a  compilation  for  each  of  the  past  five  years  ended  Sept.  30,  1914,  will  indi- 
cate to  you  very  clearly  that  the  earnings  of  the  Company  have  not  only  grown  steadily  from  year  to  year,  but  that 
in  each  one  of  these  years  the  revenue  available  for  dividends  on  the  new  preferred  stock  has  been  largely  in  excess 
of  the  required  amount.  Generally  speaking,  a  bond  is  regarded  as  a  safe  investment  if  the  issuing  corporation  can 
show  that  it  is  earning  at  least  twice  its  bond  interest.  In  fact,  a  great  many  bond  issues  which  are  regarded  as 
high-class  investments  have  a  smaller  margin  of  safety,  with  respect  to  earnings,  than  this.  You  can  readily  see 
from  an  examination  of  this  earnings  statement  how  much  stronger  even  than  this  is  the  protection  which  our  first 
preferred  stock  has  with  respect  to  earnings. 


Year 
Ended 
Septem- 
ber 30th 

Gross 
Revenue 

Net 
Revenue 

Net   Revenue 

After    Bond 

Interest  and 

Discount 

Annual 

Dividends    on 

New   Preferred 

Stock 

Balance  Available  for 
Dividends    on    Junior 
Stock   Issues  and   for 
Depreciation  or  other 
Reserves 

1910 
1911 
1912 
1913 
1914 

14,122,173.46 
14,519,411.09 
14,718,797.16 
15,725,537.27 
17,066,906.77 

6,110,917.48 
6,375,093.78 
6,361,581.78 
6,453,422.60 
8,093,271.59 

3,128,876.84 
3,191,806.45 
2,813,574.31 
2,551.069.43 
4,083,570.04 

750,000.00 
750,000.00 
750,000.00 
750,000.00 
750,000.00 

2,378,876.84 
2,441,806.45 
2,063.574.31 
1,801,069.43 
3,333,570.04 

2nd.     INTRINSIC    PROPERTY   VALUE  WELL  IN  EXCESS  OF  THE  TOTAL  OF 

THE  SECURITY  ISSUE. 

Before  authorizing  security  issues,  the  Railroad  Commission  of  the  State  of  California  requires  proof  to  be 
submitted  to  it  of  the  intrinsic  value  of  the  property  back  of  the  security  for  the  issuance  of  which  authority  is 
sought  by  the  utility. 

The  Commission,  as  you  may  know,  not  only  has  authorized  the  issuance  of  this  stock,  but  took  occasion  to 
commend  our  plan  of  junior  financing  as  being  worthy  of  emulation  by  other  utilities.  For  your  information  I  may 
add  that  the  appraised  value  of  our  property  is  substantially  in  excess  of  the  full  liquidation  value  of  $100  per  share 
of  this  new  stock. 


3rd.     FRANCHISES   EXTENDING   WELL  BEYOND  THE  MATURITY  OF  THE 

SECURITY  ISSUE. 

The  following  paragraph  from  our  1913  annual  report  will  show  you  that  for  all  practical  purposes  the  franchise 
question  may  be  regarded  as  non-existent  with  respect  to  this    Company: 

"By  its  unanimous  decision  of  April  6,  1914,  inthe  case  of  Russell  v.  Sebastian,  in  the  argument 
of  which  counsel  for  this  Company  participated,  the  Supreme  Court  of  the  United  States  established 
the  fact,  beyond  any  further  question,  that  the  franchises  secured  under  the  authority  of  the  State 
Constitution  prior  to  its  amendment  on  Ocober  10,  1911,  under  which  this  Company  is  supplying  gas 
and  electric  light  and  water  in  the  large  number  of  municipalities  served  by  it,  are  vested  property 
rights  of  perpetual  duration  and  include  the  right  of  making  all  necessary  extensions  within  such 
municipalities  upon  the  terms  of  the  original  grant.  By  a  general  law  of  the  State,  no  franchise 
of  any  description  may  now  be  granted  except  upon  condition  that  the  purchaser  pay  at  least  two 
per  cent  of  the  gross  annual  receipts  derived  from  its  exercise.  In  the  case  of  cities  governed  by 
freeholders'  charters,  the  conditions  upon  which  franchises  are  granted,  are  in  general  more  onerous 
than  those  prescribed  by  this  general  law  of  the  State.  The  importance  of  this  decision  will,  there- 
fore, be  more  fully  appreciated  when  it  is  considered  that  the  above  mentioned  franchises  of  this 
Company  are  not  only  without  time  limit,  but  are  also  not  subject  to  any  specific  rental,  charge  or 
burden   of   any   kind.  iro  •/frfFi 


4th.  EARNINGS  DERIVED  FROM  A  GROWING  AND  DIVERSIFIED  BUSINESS 
AND  WHICH  WILL  CONSEQUENTLY  NOT  BE  MATERIALLY  AFFECTED  BY  DE- 
PRESSION IN  ANY  ONE  INDUSTRY. 

The  following  statement  will  show  you  the  diversified  character  of  the  Company's  business: 

DEPRIVATION  OF  GROSS   REVENUES    PAST    SEVEN    FISCAL    YEARS. 


SOURCES    OF    GROSS    REVENUE 

PERCENTAGE  OF  TOTAL 
GROSS  REVENUE  FROM 

Year 

1 
Electricity    ■          Gas                Railway 

All  Other            Total 

Elec- 
tricity 

Gas 

Rail- 
way 

All 
Other 

Total 

1907 
1908 
1909 
1910 
1911 
1912 
1913 

$6,316,629      '   $4,086,372 
7,059,088           4,494,945 
7,678,665           4,860,034 
7,899,224           5,202,284 
7,823,903           5,735,219 
7,672,570           5,805,865 
8,230,782           6,547,595 

$431,800 
414,326 
452,396 
509,152 
533,520 
547,187 
572,913 

$507,339 
688,946 
500,193 
433,936 
511,967 
719,029 
851,047 

$11,342,140 
12,657,305 
13,491,288 
14,044,596 
14,604,609 
14,744,651 
16,202,237 

.56 
.56 
.57 
.56 
.54 
.52 
.51 

.36 

.36 
.36 
.37 
.39 
.39 
.40 

.04 
.03 
.03 
.04 
.04 
.04 
.04 

.04 
.05 
.04 
.03 
.03 
.05 
.05 

100 
100 
100 
100 
100 
100 
100 

Gain 
6    years 

$1,914,153      |   $2,461,223 

$141,113 

$343,708 

$4,860,197 

There  has  been  a  very  satisfactory  growth  in  each  line  of  activity,  and  at  no  time  has  it  been  a  case  of  having 
to  rely  for  the  payment  of  charges  and  dividends  upon  one  department  to  offset  deficiency  in  another,  although 
from  the  standpoint  of  the  security  purchaser  the  ability  to  maintain  the  stability  of  revenues  in  this  way  is  a  fac- 
tor of  much  importance.  During  the  nine  months  ended  Sept.  30,  1914,  our  electric  business  increased  $400,919  and 
our  gas  business  increased  $423,991.  I  merely  mention  this  to  lend  point  to  the  statement  that  while  the  possibilities 
of  the  future  development  of  the  electrical  industry  are  universally  recognized,  no  such  general  recognition  has  ob- 
tained with  respect  to  the  gas  industry.  In  my  opinion,  which  is  supported  not  only  by  the  foregoing  figures,  but  by 
daily  observation,  the  possibilities  of  the  growth  of  the  gas  business  are  fully  as  great  as  in  the  electrical  department. 
This  is  largely  due  to  the  increasing  use  of  gas  for  cooking  and  industrial  purposes,  but  more  particularly  to  its 
use  for  heating  of  homes,  apartment  houses  and  other  buildings  in  their  entirety.  Two  things  are  responsible  for 
this.  One  is  our  moderate  California  climate,  which  brings  this  method  of  heating  within  economical  limits,  and 
the  other  is  the  development  of  convenient  and  economical  gas  heating  systems  and  devices.  It  may  be  of  interest 
to  you  to  learn  that  a  large  number  of  the  buildings  on  the  Exposition  grounds  are  being  heated,  or  will  be  heated, 
entirely  by  means  of  gas.  As  already  stated,  our  climate  is  largely  responsible  for  this,  and  where  such  a  system  in 
colder  localities  would  be  a  luxury  which  very  few  could  afford,  it  is  within  the  reach  of  people  with  moderate  means 
in  California. 

5th.  A  GROWING  TERRITORY  FOR  THE  COMPANY'S  BUSINESS  FIELD 
AND  ONE  WHICH  IS  SUFFICIENTLY  EXTENDED  AND  DIVERSIFIED  SO  THAT 
EARNINGS  WILL  NOT  BE  MATERIALLY  AFFECTED  BY  DEPRESSION  OR  BY 
SOME  CATASTROPHE  IN  ANY  PARTICULAR  CITY  OR  OTHER  LOCALITY. 

The  Pacific  Gas  and  Electric  Company  operates  in  a  territory  approximately  37,000  square  miles,  and  in  this 
territory  serves  a  very  large  number  of  cities  and  towns,  as  shown  in  the  following  table: 


SERVICE  FURNISHED 

NUMBER  OF  CITIES  AND  TOWNS 
SERVED    BY   THE   COMPANY 

TOTAL 

Directly 

Indirectly 

Total 

POPULATION 

Electricity    

152 

49 

14 

1 

62 
2 

14 

214 

51 

28 

1 

1,221,123 

Gas    

1,124,893 
58,905 

75,602 

That  the  business  field  of  this  Company  is  one  which  has  in  the  past  grown  steadily  in  population  and  in  the 
development  of  new  industries  is  known  to  you  not  only  from  personal  observation  of  central  and  northern  Cali- 
fornia, but  is  also  attested  by  the  growth  in  our  gross  revenues  from  year  to  year  and  by  the  large  numbers  of 
consumers  added  to  our  system. 

In  the  seven  years  from  1906  to  1913,  our  business  increased  $7,255,175,  or  at  the  annual  rate  of  $1,036,453. 

In  the  last  fiscal  year  the  increase  was  $1,457,686,  and  in  the  nine  months  ended  Sept.  30,  1914,  it  was  $876,297. 

In  the  last  seven  years  (ended  Sept.  30th)  the  number  of  our  consumers  has  grown  from  172,938  to  368,498,  an 
increase  of  195,560,  or  an  average  annual  increase  of  27,937  customers.  During  the  last  of  these  years  the  growth  was 
close  to  30,000. 

6th.  SAFEGUARDS  TO  INSURE  ADDITIONAL  ISSUANCE  OF  SECURITIES 
ONLY  FOR  PURPOSES  THAT  WILL  ADD  TO  THE  VALUE  AND  EARNING  CA- 
PACITY OF  THE  PROPERTY. 

One  of  the  things  that  has  given  investors  confidence  in  bonds  as  an  investment  has  been  the  vigilance  of  bank- 
ing houses  handling  bond  issues  in  properly  safeguarding  future  issues.  What  the  bankers  have  done  in  the  past 
for  bonds  in  this  respect  is  now  being  done  by  the  Railroad  Commission.  Under  the  Public  Utilities  Act  of  Cali- 
fornia, issues  of  this  First  Preferred  Stock  can  be  made  only  with  the  authority  of  the  Railroad  Commission  for 
acquisitions,  extensions,  betterments  and  the  refunding  of  existing  obligations.  The  Commission  also  fixes  the  price 
at  which  this  stock  may  be  sold,  and  not  only  requires  information  to  be  presented  to  it  as  to  the  purposes  for 
which  the  money  realized  from  the  sale  of  this  stock  will  be  used,  but  also  requires  monthly  reports  to  be  rendered 
to  it  showing  in  detail  for  what  purposes  the  money  has  been  expended.  This  insures  to  the  investor  the  continu- 
ance of  a  safe  and  conservative  relation  of  property  values  to  any  additional  issues  of  preferred  stock  which  may 
be  put  out. 

Trusting  that  the  foreging  will  satisfactorily  answer  your  inquiry,  I  am, 


Adv. 

Attention  is  called  to  the 
announcement  on  page  II 


Very  sincerely  yours, 


153 


A.  F.  HOCKENBEAMER, 
Second  Vice-President  and  Treasurer. 


Pacific  Light  and  Power  Corporation 

Los  Angeles,  California 

An  H.  E.  Huntington  Property 
Supplies  Electricity  for  Power,  Light  and  Heat  in  Southern  California 


SECURITIES 

Stocks $23,591,500 

Bonds 20,508,000 


OPERATES 

8  Hydro-Electric  Plants  of  99,631  H.  P. 
3  Steam  Plants  of  55,919  H.  P. 
25  Substations. 
1450  Miles  of  Transmission  Line. 
1971  Miles  of  Distributing  System. 
58  Miles  of  Railroad. 


SUPPLIES  CURRENT  FOR 

36  Cities  and  Towns. 

750,000  Population. 

945  Miles  of  Electric  Railway. 

35,000  H.  P.  in  Motors. 

500,000  Lamps,  16  c.  p.  Equivalent. 


'  SOOfifOjM 


Installed  Capacity  ....    155,000  H.  P. 
Undeveloped  Water  Power  .  325,000  H.  P. 


154 


Attention  is  called  to  the 
announcement  on  fage  u 


Los  Angeles  Railway  Corporation 

Los   Angeles,   California 

An  H.  E.  Huntington  Property 
Street  Railway  System  operating  in  and  about  Los  Angeles,  Cal. 


SECURITIES 

Stocks 

$20,000,000 

Bonds 

20,000,000 

Operates 

> 

383  Miles  of  Track 
874  Modern  Street  Cars 
10  Sub  Stations 

Power  furnished  by  the  Pacific  Light  &  Power  Corporation 

Serves 


The  City  of  Los  Angeles  and  five  other 
Towns  with  a  population  of  516,000. 
Average  increase  of  population  now  15%. 


1900  1913 

Gross  Income,       -         $835,627.35  $7,005,433.26 

Miles  Road  Operated,       -       74.85  383 

Cars  Operated,    -      ■      -          110  874 

Passenger  Carried,          17,874,308  145,105,239 


Attention  is  called  to  the 

announcement  on  page  II  155 


JOHN  B.  MILLER,  PRESIDENT, 


Upon  Southern  California  it  may  be  truly  said  the  eyes  of  America 
are  focused.  The  heart  of  this  great  domain  is  extensively  served  with 
electric  energy  for  light,  heat  and  power.  Among  the  many  reasons  why 
this  region  is  attracting  world-wide  attention  are  the  wonderfully  sa- 
lubrious climate,  the  great  agricultural  and  mineral  wealth  of  the  ter- 
ritory and  the  possibilities  for  the  development  of  an  empire  where  a 
few  years  ago  there  existed  only  what  seemed  to  be  arid  deserts  and 
waste  plains.  Added  to  this,  Southern  California  has  attracted  a  class  of 
men  who  by  their  ability,  perseverance  and  foresight  have  been  able  to 
understandingly  grasp  the  conditions  and  spread  the  news  to  the  world 
beyond  the  confines  of  the  state  of  what  has  been  done  and  what  may 
yet  be  done  in  the  way  of  development. 

The  census  figures  demonstrate  that  California  is  the  second  State 
in  the  Union  in  kilowatt  rating  of  stations  and  in  kilowatt  hour  output. 
It  is  the  third  state  in  the  Union  in  aggregate  income  and  twelfth  State 
in  the  Union  as  regards  population.  The  Southern  California  Edison 
Company  is  the  second  largest  electric  company  on  the  Pacific  Coast, 
and  the  seventh  largest  electric  company  in  the  United  States  in  rela- 
tion to  gross  earnings.  The  company's  lines  cover  seven  counties  em- 
bracing an  area  of  approximately  45,000  square  miles,  which  contains  a 
population  of  1 ,030,000.   The  company  has  in  operation  hydraulic  and  steam 

generating  plants  with  a  total  capacity  of  119,- 
800  horse-power,  and  has  hydraulic  plants  un- 
der construction  of  a  total  capacity  of  116,- 
000  horse-power,  making  a  grand  total  of  235,- 
800  horse-power.  Southern  California  Edison 
electric  service  is  supplied  in  THE  CITY  OF 
LOS  ANGELES  and  about  one  hundred  cities 
and  towns  and  the  intervening  rural  commu- 
nities.     <JThe  Company's  General  Offices 


THE  FOLLOWING  TABULATION 
GIVES  A  GRAPHIC  IDEA  OF  THE 
EXTRAORDINARY  GROWTH  OF 
THE  COMPANY'S  BUSINESS. 


G*OS5  EARNINGS 

i»Q3     tBss.ees.gf 

I9Q6        %k  283.099  18 

'»rj        S4   7SOOOOOO 

TOTAL  CONSUMERS 

t»Q3      'B3Q2 , 

IftOfl      59949 

t'j      130000 

CONNECTED  LOAD 

»Q3      H3SS  H  P 

'iiOft      IOOQ37  H  P 

'913      £30000  HP 

LOAD  FACTOR 


1913      S9.BZ 


PERCENTAGE  i 


INCOME   LIGHT   AHD  POWER 


LIGHT    8Q% 


POWER    20,„ 


LIGHT    69% 


POWER    34% 
LIGHT     4*  POWER    S'% 


are  located  in  the   ILdison  Building,    Los 
Angeles,  California. 


156 


Attention  is  called  to  the 
announcement  on  page  n 


Puget  Sound  Traction, 
Light  &  Power  Company 


c 


Serves  over  425,000  popu- 
lation in  the  Puget  Sound 
District  with  Electric  Power, 
Light  and  Transportation. 


C 


74,000  horsepower  devel- 
oped at  four  hydro -electric 
plants,  ultimate  develop- 
ment 1  75,000  horsepower. 
Steam  power  developed, 
34,900  horsepower. 


C 


Seattle,  Tacoma,  Everett, 
Bellingham  and  surrounding 
territory  offer  strong  in- 
ducements to  manufactur- 
ers to  locate  factories. 


C 


This  company  will  supply 
complete  information  as  to 
low  power  rates,  raw  ma- 
terials, factory  sites,  transpor- 
tation facilities  and  market 
for  product. 


Puget  Sound  Traction, 
Light  &  Power  Company 

SEATTLE,   WASHINGTON 


SNOQUALMIE  FALLS 


Attention  is  called  to  the 
announcement  on  page  il 


157 


The  Portland  Railway,  Light  &  Power  Company — Portland,  Oregon 

Served  More  Customers,  on  the  Basis  of  Population,  on  January  1st,  1914,  Than  Any 
Public  Utility  in  the  Country  Operating  in  a  Large  City 


VANCOUVER 


Its  light  and  power  customers  totaled  42,063,  an 
increase  of  more  than  242  per  cent  compared  with 
the  number  served  on  January  1st,  1908. 

With  306  miles  of  track  electrically  operated  and 
90,000  developed  horsepower,  the  PORTLAND  RAIL- 
WAY, LIGHT  &  POWER  COMPANY  serves  very 
completely  the  transportation  and  electric  light  and 
power  requirements  of  the  city  of  Portland  and  its 
prosperous  surrounding  sections.  With  the  excep- 
tion of  three  interurban  lines,  controlled  by  the 
Southern  Pacific  and  the  Northern  Pacific  Railroad 
Companies,  the  PORTLAND  RAILWAY,  LIGHT  & 
POWER  COMPANY  operates  all  the  street  railways 
in  Portland  and  vicinity,  including  interurban  lines 
to  Oregon  City,  Troutdale,  Cazadero  and  Bull  Run, 
Oregon,  and  in  conjunction  with  the  company's  ferry 
on  the  Columbia  river,  to  Vancouver,  Washington. 
It  does  most  of  the  electric  light  and  power  business 
in  Portland;  all  of  the  electric  light  and  power  busi- 
ness in  Oregon  City,  Salem 
and  many  other  communities 
in  the  state  of  Oregon  and  in 
Vancouver,  Washington.  It 
operates  the  gas  plant  in 
Salem.  Altogether,  the  com- 
pany serves  with  light  and 
power  26  cities  and  towns, 
which,  including  others  sup- 
plied with  interurban  railway 
service,  have  a  total  popula- 
tion estimated  at  305,000. 

Power  is  sold  to  the  three 
interurban  lines  above  men- 
tioned and  also  to  the  com- 
panies operating  the  street 
railways  of  Salem  and  Van- 
couver. At  Willamette  Falls, 
Oregon  City,  where  the  water 
power  is  owned  by  the  com- 
pany, direct  water  power  is 
furnished  to  several  large 
pulp  and  paper  mills. 

In  1913  the  PORTLAND 
RAILWAY,  LIGHT  &  POWER 
COMPANY  bought  the  Yam- 
hill Electric  Company,  serving 
a  population  of  5,000  at  New- 
berg,  Carlton,  Lafayette,  St. 
Paul  and  other  communities 
in  the  Willamette  Valley,  and 
selling  wholesale  power  to  the 
Tualatin  Electric  Company. 
The  Yamhill  Electric  Company 
has  long-term  franchises  and 
municipal  contracts  in  all  the 
communities  served.  The  com- 
pany also  obtained  control  of 
the  Willamette  Valley  South- 
ern Railway  Company,  which  is  constructing  a  stand- 
ard gauge  electric  line  on  private  right-of-way  (except 
for  a  few  blocks  in  Oregon  City)  from  Oregon  City 
to  Molalla  and  Mt.  Angel,  a  distance  of  32  miles. 
The  new  line  connects  at  Oregon  City  with  the  com- 
pany's interurban  service  to  Portland.  The  region 
tapped  is  one  of  the  richest  farming  sections  in  Ore- 
gon, and  besides  passenger  traffic,  a  large  freight 
business  will  be  developed,  consisting  mainly  of  haul- 
ing lumber. 

The  company's  street  railway  franchises  in  Port- 
land, expiring  in  1932,  contain  valuable  preferential 
rights  covering  subsequent  franchises.  No  time  limit 
is  specified  in  the  principal  light  and  power  franchises 
and  under  a  recent  decision  of  the  United  States  Su- 
preme Court,  a  similar  franchise  was  held  to  be  per- 
petual. The  power  plants,  carhouses,  shops  and  other 
real  estate,  high  tension  transmission  lines  and  a 
large  part  of  the  interurban  lines  are  owned  in  fee  and 
are,  therefore,  not  subject  to  franchise  expiration. 

There  are  ten  generating  plants,  with  90,000  horse- 
power developed.  Five  of  these  are  hydro-electric 
plants  and  five  are  steam  stations.    The  company  has 


PORTLAND  RAILWAY. 

LIGHT  &  POWER 

COMPANY 

PORTLAND,   OREGON 
L.  4  P-  Co.  Total  MJlaaao  °"  Sinslo-TrMk 


at  least  an  equal  amount  of  water  rights  in  reserve. 
Approximately  83  %  of  all  the  electric  energy  required 
in  1913  was  generated  by  water  power.  In  addition 
to  these  power  plants  and  22  sub-stations,  the  PORT- 
LAND RAILWAY,  LIGHT  &  POWER  COMPANY 
owns  633  passenger  cars,  522  cars  and  12  locomotives 
for  freight  service;  a  commodious  building  for  use  of 
the  light  and  power  development;  car  shops,  four 
carhouses,  a  nine-story  building  in  the  center  of  the 
business  district,  occupied  by  its  offices;  the  only 
amusement  park  near  the  city  of  Portland;  large 
tracts  of  land  fronting  for  about  four  miles  on  the 
east  side  of  the  Willamette  river,  near  the  business 
center  and  valuable  for  terminal  purposes,  and  con- 
siderable real  estate  in  various  parts  of  the  city. 

The  company's  properties  and  equipment  are  in  ex- 
cellent physical   condition,   of  the   most   modern  con- 
struction and  as  well  maintained  as  any  similar  sys- 
tem  in   the   United    States.      Through   application   of 
the  principles  of  scientific  effi- 
ciency,  expenses   of   operation 
have,     without     impairing    the 
service,    been   kept   at    a    low 
percentage       despite       higher 
wages  and  the  increased   cost 
of  materials. 

Portland  is  one  of  the 
wealthiest  cities  of  its  size  in 
the  United  States  and  the 
greatest  manufacturing  city  in 
the  Pacific  Northwest.  Its 
banks  have  deposits  aggregat- 
ing $71,000,000;  it  has  an  as- 
sessed valuation  of  $300,000,- 
000;  48,000  telephones  and 
43,329  dwelling  houses.  Its 
bank  clearances  for  1913  ex- 
ceeded $600,000,000;  its  postal 
receipts,  $1,200,000;  value  of 
building  permits  for  the  year. 
$13,400,000.  These  figures  have 
few  equals  in  the  United 
States,  when  population  is 
taken  as  the  basis  for  com- 
parison. 

Portland  is  the  greatest 
lumber  shipping  port  in  the 
world,  many  of  the  largest 
mills  in  the  country  being  lo- 
cated there.  The  available 
forest  wealth  is  practically  in- 
exhaustible. Its  harbor  is  one 
of  the  largest  fresh  water 
basins  in  the  world  and 
can  accommodate  steamships 
drawing  25%  feet  of  water. 
Steamers  leave  its  wharves 
for  China,  Japan,  the 
Philippines,  Hawaii,  Alaska  and  various  Pacific  coast 
ports.  It  has  a  large  export  business  and  is  an  im- 
portant railroad  center,  being  served  by  four  trans- 
continental railways — the  Union  Pacific,  Southern 
Pacific,  Northern  Pacific  and  Great  Northern.  Through 
the  Columbia  River  valley  it  affords  the  only  water 
grade  railroad  outlet  to  the  Pacific  coast  for  what 
is  known  as  the  Great  Inland  Empire  of  250,000  square 
miles,  comprising  Eastern  Oregon,  Eastern  Washing- 
ton, Idaho  and  Western  Montana. 

Completion  of  the  Panama  Canal  means  the  open- 
ing of  a  new  gateway  for  commerce,  one  result  of 
which  will  undoubtedly  be  a  stimulus  to  business — 
foreign  and  domestic — that  will  manifest  itself  in 
improved  general  conditions  throughout  the  Pacific 
coast.  Development  of  Alaska  and  the  inauguration 
of  a  new  steamship  line  from  Portland  to  that  coun- 
try will  have  its  beneficial  effects  and  the  combina- 
tion generally  is  being  looked  upon  as  among  the 
most  important  factors  in  the  future  development  of 
Portland  and  its  surrounding  territory,  as  well  as 
other  large  cities  on  the  Pacific  coast. 


The  Portland  Railway,  Light  &  Power  Company 

Is  Controlled  and  Managed  by  E.  W.  CLARK  &  COMPANY,  Philadelphia,  Pa. 


158 


Attention  is  called   to   the 
announcement  on  page  II 


MORRIS  BROTHERS,  Inc. 


Carefully  Selected 

Municipal  and  Corporation  Bonds 

of  the  Pacific  Northwest 

RAILWAY  EXCHANGE  BUILDING 
PORTLAND,  OREGON 

New  York  Philadelphia 

Oldest  Established  Bond  House   in   the   Pacific  Northwest 


The  Investor's 
Monthly  Manual 


Katablinhed    180  1. 


An  indispensable  Work  of  Reference  to 

everyone  interested  in  the  movements  of 

Stocks  and  Shares. 


Absolutely    free    from    any    connection 

with  any  financial  house  or   speculative 

agency. 


The  Investor's  Monthly  Manual  is  published  atihe  beginning 
of  each  month  [generally  on  the  2nd],  and  is  by  far  the  moat 
complete  periodicnl  record  in  existence  of  the  dealings 
throughout  the  United  Kingdom  during,  and  up  to  the  last  day  of 
each  month,  in  every  description  of  Stocks  and  Shares,  etc.  The 
MANUAL  gives  particulars  of  three  thousand  securities,  with  their 
variations  in  price  during  the  month  and  during  the  year,  the 
dividends  recently  paid,  and  the  yield  to  an  investor  at  present 
quotations.  A  "Summary  of  Profit  and  Loss  Accounts"  presents  a 
comparison  of  Industrial  Companies  not  to  be  found  elsewhere. 
The  MANUAL  also  contains  a  Financial  Record  of  the  Month 
together  with  articles  and  notes  upon  current  topics  of  interest. 


Price  1-:    by  post,  11  i. 

Annual  Subscription  (including  Two  Double  Numbers), 

14  9,  post  free. 


Offices:   3  Arundel  Street,  Strand 
London,  W.  C. 


H.T.  CORY 
C.  L.  CORY 

Consulting  Engineers 


Wells  Fargo  Nevada  National 
Bank  Building 


San  Francisco,  Cal.,  U.  S.  A. 


Attention  is  called  to  the 
announcement  on  page  n 


159 


Pacific  Power  &  Light  Company 


The  Columbia,  Walla  Walla  and  Yakima 
Valleys,  in  which  the  Pacific  Power  &  Light 
Company  operates,  are  among  the  richest 
on  the  Pacific  Coast. 

The  territory  affords  excellent  opportunities 
for  all  industries  depending  for  success  upon 
raw  materials,  transportation  facilities  and 
low-cost  power. 

Pacific  Power  &  Light  Company  has  large 
electric  power  developments  and  furnishes 
power  for  industrial,  irrigation  and  miscel- 
laneous purposes  at  low  cost. 

This  Company  will  supply  complete  informa- 
tion regarding  natural  resources,  developed 
industries,  transportation  facilities  and  power 
rates. 

Head  Office,  Portland,  Oregon 


Attention  is  called  to  the 
160  announcement  on  page  n 


LOS  ANGELES  GAS  AND  ELECTRIC  CORPORATION 

April  1,  1914 
CAPITALIZATION 

CAPITAL  STOCK: 

First  Preferred  6%  Cumulative   . '» 

Second  Preferred  6%  Cumulative  ........ 

Common , 

BONDED  DEBT  (Less  Bonds  in  Sinking  Funds)  : 

First  and  Refunding  Mortgage  5%  Bonds 

(Authorized  $15,000,000) 

Underlying  Bonds  (Closed  mortgages)  .  ..,.•• 

Total  Bonds  Outstanding , 

Bond  Trustees: 

Union  Trust  Company  of  San  Francisco, 
Harris  Trust  and  Savings  Bank,    Chicago,  111. 

EARNINGS  AND  EXPENSES 

Year  Ending 

Dec.  31, 1912 

Gross  earnings .     $4,178,176 

Operating  Expenses  and  Taxes 2,335,212 

Net  Earnings •     $1,842,964 

Annual  Bond  Interest  Charge 396,405 

Surplus $1,446,559 


Outstanding 
None 
None 

$10,000,000 


$4,659,000 
3,236,000 

$7,895,000 


Year  Ending 

Dec.  31, 1913 

$4,527,164 
2,589,594 

$1,937,570 
400,943 

$1,536,627 


DEPRECIATION— SINKING  FUND 
The  allowance  for  depreciation  has  amounted  to  $4,676,074  since  May  1,  1904. 

The  Corporation  is  required  to  make  annual  sinking  fund  payments,  which  began  July  1,  1910, 
equal  to  2%  of  the  total  amount  of  bonds  outstanding.  Up  to  the  present  time  $755,000  Underlying  and 
Corporation  Refunding  Mortgage  5%  Bonds  have  been  cancelled  or  are  held  alive  by  their  respective  sinking 
funds. 


PROPERTY  AND  BUSINESS  FIELD 

The  Corporation  has  a  thoroughly  modern  equipment  for  the  manufacture  and  distribution  of  gas  in  Los 
Angeles,  Pasadena,  South  Pasadena,  Alhambra,  San  Gabriel,  San  Marino,  Watts,  Eagle  Rock,  Huntington 
Park,  Inglewood  and  other  suburban  districts,  aggregating  a  population  of  about  570,000,  in  which  ter- 
ritory it  controls  about  85%  of  the  gas  business.  It  carries  on  an  electric  light  and  power  business  in  the 
City  of  Los  Angeles,  a  field  served  also  by  the  Southern  California  Edison  Company  and  the  Pacific  Light 
and  Power  Corporation.  The  physical  property  of  the  Corporation,  without  any  allowance  for  franchise  oi 
good  will,  is  conservatively  valued  at  over  $20,400,000,  or  over  two  and  one-half  times  the  $7,895,000  of  out- 
standing bonds. 


The  following  details  as  of  Apr.  1,  1914,  may  be  of  interest: 

Rated  capacity  of  gas  generating  plant 
per  24  hours  .... 

Holder  capacity 

Miles  of  gas  mains         .... 
Number  of  gas  meters    .... 
Builders'  rated  capacity  of  electric  plant  . 
Miles  of  electric  overhead  main  wire 
Miles  of  electric  underground  conduits     . 
Number  of  electric  meters 
Total  electric  connected  load 


31,140,000  cu.  ft. 
15,000,000    "  "  " 
1,239 
123,621 
25,650  H.  P. 
2,388 
21 
36,794 
65,717  H.   P. 


MANAGEMENT 
The  principal  officers  of  the  Corporation  are  as  follows : 


President  &  General  Manager,  W.  B.  Cline. 

Vice-President,  We  Baurhyte. 

Second  Vice-President,  C.  P.  Houghton. 


Third  Vice-President,  C.  S.  Vance. 
Secretary  &  Treasurer,  R.  M.  Adams. 
General  Counsel,  Wm.  A.  Cheney. 


Attention  is  called  to  the 
announcement  on  page  11 


161 


SERVICE 


Associated  Savings  Banks  of  San  Francisco 
A  Community  Asset 


A  GREAT  banking  centre  is 
the  product  of  two  ele- 
ments :  a  productive  land  and 
a  thrifty  people.  Where  money- 
is  made  and  saved,  there  will 
be  found  the  strongest  banks 
to  direct  its  proper  use. 
*     *     * 

OAN  FRANCISCO  as  the 
*^  banking  centre  of  the 
West  had  its  beginning  in 
the  days  following  the  discov- 
ery of  gold  in  California,  when 
the  city  was  only  an  isolated 
collection  of  shacks  on  the 
edge  of  a  wilderness.  At  that 
time  a  transcontinental  rail- 
way was  scarcely  dreamed  of,  and  the  only  inhabitants 
were  the  pioneers,  who  had  traveled  across  the  plains  or 
by  ship  "around  the  Horn." 

Even  with  the  golden  stream  from  the  mines,  capital 
was  urgently  needed  and  progress  at  first  was  slow.  But 
the  settlers  worked  and  saved,  until  soon  they  were  able 
to  establish  through  sound  banks  a  credit  that  is  inde- 
pendent of  the  rest  of  the  world. 

With  their  own  credit,  secured  by  their  own  savings, 
they  have  built  their  city,  not  once,  but  twice,  in  the  face 
of  adversity. 

*  *     * 

'Tp  HE  test  of  the  savings  banks  of  San  Francisco  as 
■*-  an  unfailing  community  asset  came  when  the  great 
fire  of  1906  wiped  out  property  values  amounting  to  $400,- 
000,000 — the  accumulated  wealth  of  two  generations. 
How  the  banks  passed  though  that  crisis  without  loss  to 
a  single  depositor  must  be  convincing  proof  of  sound  and 
able  management. 

The  greater  part  of  the  loss  caused  by  the  fire  fell  upon 
real  estate;  that  is,  upon  the  buildings  that  stood  in  the 
heart  of  the  most  valuable  retail,  commercial  and  resi- 
dence districts.  At  the  time  of  the  fire,  the  banks  had 
fifty  per  cent  of  their  total  assets  loaned  on  the  property 
that  was  destroyed.  All  that  remained  were  blackened 
ruins  and  tottering  walls. 

*  *     * 

pv  EPOSITORS  had  to  be  protected.  So,  too,  the  bor- 
*-'  rowers,  who  needed  additional  money  to  rebuild  at 
once.  The  banks  came  forward  with  their  strong  reserves 
and  convertible  securities,  and  with  the  aid  of  the  insur- 
ance, turned  these  elements  of  capital  into  a  credit  that 
has  been  used  to  build  a  finer  and  costlier  city  than  be- 
fore. 

By  reason  of  their  demonstration  of  strength  in  this 
emergency,  the  banks  have  grown  larger  and  more  secure 
in  the  years  that  have  passed,  and  better  able  to  meet  the 
needs  of  the  growing  community  which  they  serve. 

A  more  convincing  record  has  never  been  made  by  the 
banks  of  any  city  in  the  world. 

*  *    * 

A  T  the  close  of  1905,  the  year  before  the  fire,  the  total 
■**  resources  of  the  savings  banks  of  San  Francisco 
amounted  to  $177,000,000. 
Since  then  they  have  increased 
nearly  one-fifth,  in  spite  of  the 
losses  sustained  through  the 
destruction  of  bank  property — 
losses  which  were  borne  by 
the  banks  and  not  by  their  de- 
positors. 

Loans  on  real  estate,  mean- 
ing the  money  loaned  for  the 
improvement  of  property,  have 
grown  from  $97,000,000  to 
$125,000,000. 


Consolidated    Statement    Showing    Condition  of  Eleven 

Institutions  Composing  the  Associated  Savings 

Banks  of  San  Francisco  on  June  30,  1914. 

RESOURCES 

Loans 1133,896,748 

Bonds  and  other  securities 53,131 .602 

Bank  premises 6,014,412 

Otherreal  estate 2,296,890 

Due  from  reserve  banks 6,027,934 

Cashonhand 10,134,588 

Other  Assets 1,135,878 


Total $212,698,052 

LIABILITIES 

Capital t    7,180,000 

Surplus 8,475,819 

Undivided  Profits 661,799 

Other  Profits  984,959 

Due  to  other  banks 478,025 

Individual  deposits  subject  to  check 11,863,866 

Savings  deposits 180,436,687 

Deposits  of  public  moneys ■. 1,660,506 

Other  Liabilities 956,391 

Total $212,698,052 


Individual  deposits,  as 
shown  by  the  last  reports, 
have  reached  close  to  $200,- 
000,000,  a  growth  of  nearly  25 
per  cent. 

*     *     * 

that 


Table  Showing    Strength  of    Associated  Savings  Banks 

of  San  Francisco  with  Deposits,  Capital 

and  Surplus,  June  30,  1914. 


Bank  Deposits 

German  Savings  &  Loan  Society $55,798,917 

Hibernia  Savings  &  Loan  Society 55,122,574 

Savings  Union  Bank  &  Trust  Company  33,739,800 

Bank  of  Italy 15,341,205 


Mutual  Savings  Bank.   . 

Humboldt  Savings  Bank  

French  American  Bank  of  Savings 

Italian  American  Bank 

Security  Savings  Bank 

Columbus  Savings  &  Loan  Society 
Mission  Savings  Bank . 


162 


FURTHER  evidence 
the  savings  banks  of  San 
Francisco  possess  the  quality 
of  safety  requisite  to  obtain 
the  confidence  of  the  commun- 
ity is  found  in  the  California 
Banking  Laws,  which  afford 
full  and  complete  protection  to 
every  interest  involved  in 
bank  management.  The  State 
Superintendent  of  Banks,  in 
his  published  report  dated  October  31,  1913,  discusses  the 
character  of  these   Laws  as  follows: 

"Under  authority  of  the  amended  laws,  state  supervised 
banks,  which  necessarily  are  the  support  of  private  credit 
and  the  basis  of  industrial  progress,  are  given  as  wide  a 
range  of  activity  as  is  consistent  with  absolute  safety  of 
deposits.  The  amended  laws  are  designed  with  the  primary 
objective  that  the  safety  of  bank  deposits  must  not  be  im- 
periled. Stability  of  investments  and  the  possession  of 
cash  resources  sufficient  for  the  emergencies  of  business 
have  been  the  guiding  posts,  in  the  amended  act,  where 
regulation    ends    and    freedom    of   honest    action    for    the 

banker  begins." 

*  *     * 

IN  point  of  size  and  strength,  the  institutions  composing 
the  Associated  Savings  Banks  of  San  Francisco  rival 
those  of  any  community  in  America.  The  per  capita  de- 
posits are  the  highest  in  the  country,  for  the  people  believe 
in  these  banks  and  are  glad  to  assume  with  them  reciprocal 
relations  that  make  towards  the  improvement  and  de- 
velopment of  the  city  and  state. 

It  is  worthy  of  mention  that  the  savings  Banks,  as  heavy 
investors  in  the  bonds  of  California  enterprises,  are  an 
important  factor  in  the  commercial  growth  of  the  state. 

*  *     * 

KNOWLEDGE  of  these  facts  is  important  to  the  settler, 
the  investor  and  the  prospective  visitor  to  San  Fran- 
cisco. 

Sound  banks  mean  that  worthy  enterprises  will  not  lack 
for  financial  support.  When  they  are  of  highest  service  to 
the  community,  as  in  San  Francisco,  they  establish  a  bene- 
ficial union  between  capital  and  credit  that  opens  the  way 
to  increased  prosperity  and  wealth. 

*  *     * 

THE  eleven  banks  composing  the  Associated  Savings 
Banks  of  San  Francisco  exhibit  a  spirit  of  progress 
that  constantly  makes  for  the  improvement  of  their  service 
and  facilities.  The  extraordinary  growth  of  the  past  few 
years  has  been  shared  by  all,  and  under  their  present  able 
management  all  will  continue  to  increase  in  size  and 
strength. 

Those  operating  strictly  as  savings  banks  are  the  Colum- 
bus Savings  and  Loan  Society,  founded  in  1893;  the  Hi- 
bernia  Savings  and  Loan  Society,  founded  in  1864;  the 
Mission  Savings  Bank,  founded  in  1906;  the  Mutual  Sav- 
ings Bank,  founded  in  1889;  and  the  Security  Savings 
Bank,  which  was  organized  in  1871. 

The  banks  transacting  a  departmental  business  are  the 
Bank  of  Italy,  organized  in  1904,  commercial  and  savings; 
French  American  Bank  of  Savings,  organized  in  1860, 
commercial  and  savings;  German  Savings  and  Loan  So- 
ciety, founded  in  1868,  commercial  and  savings;  Humboldt 
Savings  Bank,  founded  in  1869,  commercial  and  savings; 
Italian-American  Bank,  founded  in  1899,  commercial  and 

savings;  and  the  Savings 
Union  Bank  and  Trust  Com- 
pany, founded  in  1862,  which 
transacts  a  full  departmental 
business,  including  commer- 
cial, savings  and  trust  depart- 
ments. 

Modern  fireproof  safe  de- 
posit vaults  for  the  use  of  the 
public  are  maintained  by  the 
Savings  Union  Bank  and  Trust 
Company,  the  Bank  of  Italy, 
the  Columbus  Savings  and 
Loan  Society,  the  French 
American  Bank  of  Savings  and 

the  Humboldt  Savings  Bank. 
Adv. 


8.723,286 
6.870.497 
6,155,936 
4,949,519 
3,690,985 
2,351,838 
1,882,372 


Capital 

and  Surplus 

$2,775,000 

3,694,819 

3,620,000 

1,397,000 

925,000 

1,000,000 

944,000 

940,000 

635.000 

240,000 

205,000 


BANK  &  TRUST  CO. 
SECTION 


The  Bank  of  California 

National  Association 

San  Francisco,  California 

Founded  in  1864 

Having  Branches  at 

Portland,  Oregon  Seattle,  Washington 

Tacoma,  Washington         Virginia  City,  Nevada 

Capital  paid  in  Gold  Coin $8,500,000.00 

Surplus 6,500,000.00 

Undivided  Profits,  September  1 2,  1 9 1 4    .        1 ,795,664.29 


The  Bank  issues  Merchandise  and  Travelers' 
Letters  of  Credit,  available  throughout  the  world 
and  transacts  legitimate  banking  of  every  nature. 

Correspondence  and  accounts  invited 


Attention  is  called  to  the 
164  announcement  on  page  II 


STATEMENTS 


of 


Banks  &  Trust  Companies  of  the  Pacific  Coast 


These  figures  are  compiled  from  the  latest  reports  to  the  publishers. 


Hundreds 
CALIFORNIA —                                 \Capitali 

Omitted  Throughout. 

Surp.  |    Gross   |    Gross 

and          De-           Re- 

Profits]    posits   1  sources 

Hundreds 

CALI FORN 1  A—  (Cont'd) 

Capital 

Omitted  Throughout. 
Surp.  I    Gross       Gross 
and          De-           lie- 
Profits]    posits     sources 

San  Francisco — 
Anglo     &     London-Paris     Na- 

H.ooo 

4,000 
1,500 
8,500'i 
1,250 

123 
2,000 

650 
3,000 
1,500 

400 
3,250 

750 

125 
2,000 
1,000 
1,500 

200 

325 
1,500 

500 
1,200 
6,000 

130 

750 
1,200 

600 
200 
500 
500 
100 

100 

236 

100 

50 

100 
150 
100 
100 
400 

250 
300 

90 
400 

50 
100 

55 

100 
250 
100 

65 
50 

500 
75 
35 

200 
200 

1    450 

1,809 

400 

8,295 

340 

33 

3,263 

200 

1,932 

316 

93 

4,066 

217 

95 

1,148 

348 

279 

91 

58 

2,469 

213 

1,718 

5,148 

157 

350 

1,857 

3,889 

400 

15 

475 

423 

1 

45 
146 

17 
28 

33 
175 

5 
86 

136 

65 
128 

14 
288 

35 

48 
7 

30 

250 

19 

30 

350 
5 
3 

100 
162 

<  5,050 

30,995 
8,862 

38,930 

15,379 
694 

20,615 
1,706! 

14,725| 
4,062' 
4,893 

20,532' 

5,052 

850 

10,419 

4,700 

1,320 

1,342 

33,373 

1,585 

20,058 

29,070 

2,328 

6,500 

55,799 

53,466 

6,641 

1,875 

8,400 

3,580 

75 

506 

2,537 

421 

656 

616 

1,276 

275 

982 

1,980 

723 
2,510 
368 
4,053 
491 
531 
316 

500 

1,000 

682 

94 

825 

1,110 

|        148 

148 

875 
1,268 

f  8,000 

41,467 

10,862 

63,933 

17,171 

902 

29,120 

2,670 

20,935 

6,379 

5,484 

41,359 

6,119 

1,050 

15,936 

1,358 

7,730 

1,757 

1,760 

37,451 

2,798 

23,217 

48,941 

2,650 

7,600 

58,857 

57,536 

7,881 

2,111 

9,575 

4,564 

176 

760 

2,918 

537 

734 

750 

1,814 

455 

1,168 

|     2,557 

1,238 
3,122 
472 
4,955 
583 
690 
379 

630 
1,695 
802 
168 
950 

2,250 
283 
186 

1,187 
1,830 

Eureka—     (Cont'd) 

100 
200 
100  j 

200| 
300 
500 
200 
67 
30 
100 
150 

150 

100 

100 

100 

25 

50 

50 

250 

100 

25 

50 

100 
100 
120 
200 
150 
250 

1,500 

300 

25 

1,500 

1,500 
25 

1,000 
500 
300 
250 
200 
300 
500 

1,000 

750 

325 

1,000 

300 

600 

1,500 

1,800 

500 

100 
50 

150 

130 

1 
65i 

80] 

140J 

125 
350 
445^ 
361 
5 

151 
124 

14 

66 
225 
34 
46 
55 
30 

327 

155 

35 

136 

28 

65 

38 

100 

138 

114 

754 

180 

2 

2,136 

2,543 

16 

646 

216 

236 

20 

106 

87 

157 

1,377 

295 

45 

117 

69 

40 

1,539 

1,868 

370 

121 
12 

65 

64 

1,200 

600 

1,610 

581 
2,000 1 
2,744 
1,051 

535, 

341 

1,906 

950 

1,197 

745 
1,001 
170 
74 
545 
242 

727 
320 
370 
634 

790 
1,001 
1,087 
1,150 
1,489 
1,761 

9,700 

2,430 

56 

13,294 

18,962 

260 

6,937 

4,786 

2,863 

1,136 

1,243 

2,659 

3,013 

18,676 

5,175 
3,010 
6,295 

2,746 

198 

1  17,113 

38,500 

200 

852 
303 

513 

1,876 

1,350 

Humboldt  National  Bank 

Savings  Bank  of  Humboldt  Co. 
Fresno — 

Bank  of  Central  California 

Farmers  National  Bank ! 

Fresno  Savings  Bank   ] 

900 
1,855 

Anglo  California  Trust  Co 

Bank  of  California,  N.  A 

906 
3,000 

4,039 

Donohue-Kelly  Banking  Co 

1,863 

600 

64 

2,198 
1,389 

International  Banking  Corp.... 

Grass   Valley — 

1,361 

Marine  Trust  &  Savings  Bank. 
Mercantile  Nat'l  Bank  of  S.  F. 

Hanford — 
Farmers  &  Merchants  Nat'l  Bk. 

961 
1,441 

Merchants  National  Bank 

Hanford  National   Bank 

Peoples  Savings  Bank 

The  Old  Bank  

347 
149 

Portuguese-American  Bank  . . . 

726 

Sav.  Union  Bank  &  Trust  Co.. 

Hollister — 

322 
1,362 

Wells   Fargo  Nevada   National 

531 

Columbus  Savings  &  Loan 

German  Savings  &  Loan  Soc. 
Hibernian  Savings  &  Loan  Soc. 

Long  Beach — 

435 
825 

1,000 

Humboldt  Savings  Bank 

Mission  Savings   Bank 

Farmers  &  Merchants  Bank... 

1,267 
1,246 
1,500 

Western  Metropolis  Sav.  Bank 
Alameda — 

Citizens  Savings  Bank 

National  Bank  of  Long  Beach. 
Long  Beach  Sav.  &  Trust  Co.. 
Los  Angeles — 

Commercial  National  Bank. . .  . 

1,924 
2,146 

13,700 

3,479 

95 

Farmers  &  Merchants  Nat'l  Bk. 
First  National  Bank 

19,001 
25,401 

Merchants   National   Bank 

National  Bank  of  California... 
Security  National  Bank 

305 

First   National   Bank 

National  Bank  of  Bakersfield. . 
Producers  Savings   Bank 

9,292 
6,674 
3,515 
1,423 

Berkeley — 

United  States  National  Bank. . 

California   Savings   Bank 

Citizens  Trust  &  Savings  Bank 
German-American     Trust     & 

1,782 
3,046 
3,679 

21,053 

Hellman   Commercial  Trust   & 

6,335 

West  Berkeley  Bank 

Hibernian   Savings  Bank 

3,379 

7,462 

International    Savings    &    Ex- 

Butte  County  National  Bank.. 

3,164 

Butte  County  Savings  Bank... 
♦Peoples  Savings  &  Com'l  Bk. 
First   National   Bank 

Los  Angeles  Title  &  Trust  Co 
Los  Angeles  Trust  &  Sav.  Bk. 
Security  Trust  &   Savings   Bk 
Title  Guarantee  &  Trust  Co... 
Martinez — 

838 
!  20,234 
!  42,800 

♦Opened  July,  1914. 
Colusa 

1,070 

i 

1,086 

415 

First  Savings  Bank 

Marysville — 
Decker,  Jewett  &  Co.  Bank... 
Northern    California    Bank    of 

1 

Eureka — 
Bank  of  Eureka 

728 

2,070 

166 


BANKS  AND  TRUST  COMPANIES 


CALIFORNIA—  (Cont'd) 
Marysville — (Cont'd) 

Capita 

Surp. 

and 

Profitl 

Gross 
De- 
posits 

Gross 
Re- 
sources 

250 

100 

100 
100 
300 

49 
200 
250 
100 

25 
100 

175 
50 
25 

100 

144 

105 

1,000 

500 

110 

420 

25 

26 

500 

189 
500 
1.150 
100 
300 

25 

30 

50 

300 

250 

250 

25 

250 
200 
200 
300 
200 
100 
25 
100 
425 

100 
200 
100 
250 
400 

100 

150 

50 

75 

100 
105 

300 
100 

200 

150 

150 

50 

339 

43 

10 

41 

119 

37 
85 
82 
20 
24 
56 

150 
50 
15 
40 

26 

4 
665 
162 

8 
84 

5 
10 

253 

13 

82 

1,258 

189 

652 

7 
14 
61 
49 

210 
65 
46 

6 

30 

137 

30 

136 

5 

15 

90 

82 

30 
38 

55 

49 

177 

13 

195 

22 

19 

112 
45 

232 
1 

123| 

135 

227 

50 

1,716 

807 

204 

585 

1,840 

190 
778 
562 
544 
160 
640 

939 

1,042 

341 

500 

1,140 

268 
6,050 
3,100 

225 
1,451 

260 

158 

6,500 

1,857 
3,690 
21,619 
1,047 
5,185 

103 
370 
534 
647 

1,050 
903 
304 

430 

680 

1,799 

2,342 

2,122 

450 

171 

2,044 

2,513 

1,187 
1,127 
847 
1,194 
1,050 

390 

1,076 

300 

550 

890 
450 

1,600 
368 

502 
900 
781 
675 

2,396 
953 

419 

827 

2,259 

305 
1,302 
996 
690 
197 
796 

1,400 

1,155 

383 

650 

1,315 

377 
9,260 
3,262 

360 
2,112 

295 

199 

7,400 

2,101 
4,280 
24,551 
1,362 
6,137 

135 

421 

657 

1,046 

1,500 

1,551 

377 

630 

910 

2,353 

3,160 

2,466 

705 

215 

2,369 

4,184 

1,317 
1,565 
1,002 
1,514 
1,845 

675 

1,572 
372 
650 

1,238 
630 

2,310 
578 

1,016 

1,500 

1,409 

775 

Merced — 
Commercial  Savings  Bank.... 
Farmers  &  Merchants  National 

Merced  Security  Savings  Bank 

Modesto — 
Farmers  &  Merchants  Bank. . 
First  National  Bank 

Modesto  Bank   

Union  Savings  Bank  

Napa — 
Bank  of  Napa 

First  National   Bank 

Jas.  H.  Goodman  &  Co.  Bank.. 
Nevada  City — 

Oakland — 

First  National  Bank 

Harbor  Bank 

Security  Bank   

Twenty-third  Avenue  Bank.... 
West  Oakland  Bank 

Central  Savings  Bank  of  Oak- 
land     

Farmers  &  Merchants  Savings 
Bank   

First  Savings  Bank 

Oroville — 

Bank  of  Rideout,  Smith  &  Co. 
First  National  Bank 

Rideout-Smith  National  Bank.. 
Oxnard — 

Oxnard   Savings  Bank 

Pasadena — 

Citizens  Savings  Bank 

Crown  City  Sav.  &  Trust  Co.. . 
First  National  Bank 

National  Bank  of  Pasadena... 
Pasadena  Savings  &  Trust  Co. 

Union  National  Bank   

Union  Trust  &  Savings  Bank.. 

Petal  u  ma — 

California  Savings  Bank 

Petaluma  National  Bank 

Petaluma   Savings   Bank 

Petaluma    Swiss-American    Bk. 
Sonoma  County  National  Bank 

Pomona — 

American  National  Bank 

First  National  Bank 

Savings  Bank  of  Pomona 

Porterville — 

Red  Bluff- 
Red  Bluff  National  Bank 

Redlands — 

First   National   Bank 

Redlands  National  Bank 

Union  Savings  Bank 

CALIFORNIA—  (Cont'd) 


Richmond — 

Bank  of  Richmond 

First   National   Bank 

Mechanics  Banks   

Richmond   Savings  Bank 

Riverside — 

Citizens   National   Bank 

First   National  Bank 

National  Bank  of  Riverside... 

Peoples  Loan  &  Trust  Co 

Riverside      Savings     Bank      & 

Trust  Co 

Security    Savings   Bank 

Sacramento — 

California   National    Bank 

California   Savings   Bank 

Capital  Banking  &  Trust  Co... 

Capital  National   Bank 

Farmers  &  Mechanics  Savings 

Bank    

Fort  Sutter  National  Bank 

Nat'l  Bank  of  D.  O.  Mills  Co.. . 

Nippon  Bank   

Peoples  Savings   Bank 

Sacramento  Bank  

Sacramento  Valley  Bank 

Salinas — 

First  National  Bank 

Monterey   County  Bank   

Salinas  City  Bank 

Salinas  Valley  Savings  Bank. . 

San  Bernardino — 

California  State   Bank 

Farmers  Exchange  Nat'l  Bank 
San  Bernardino  National  Bank 
San  Bernardino  Co.  Sav.  Bank 
Sav.  Bank  of  San  Bernardino. . 

San   Diego — 

American  National  Bank 

Bank  of  Commerce  &  Trust  Co. 

Citizens    Savings    Bank 

East  San  Diego  State  Bank.  .J 

First  National  Bank 

Marine   National   Bank 

Merchants  National  Bank 

San  Diego  Savings  Bank 

Security    Commercial    &     Sav- 
ings Bank   

Southern  Trust  &  Savings  Bk. 
United  States  National  Bank.. 
University  Avenue  Bank 

San  Jose — 

Bank  of  San  Jose 

First  National  Bank 

Garden  City  Bank  &  Trust  Co. 
San  Jose  Safe  Deposit  Bank.. 

Security  Savings  Bank 

Security  State  Bank 

San    Leandro — 

Bank  of  San  Leandro 

First  National  Bank 

San  Leandro  State  Bank 

San   Luis  Obispo — 

Commercial  Bank  

Union   National  Bank 

Santa  Ana — 
California  National  Bank. . 
Farmers  &  Merchants  National 

Bank   

First   National   Bank 

Home  Savings  Bank 

Orange     County      Savings     & 

Trust    Co 

Santa  Ana  Savings  Bank.. 

Santa  Barbara — 

Central  Bank   

Commercial  Bank   

First  National  Bank 


Capital 


Surp. 

ana 

Profits 


Gross   I    Gross 

De-     j      Re- 

posits   |  sources 


501 
100 

50 
50] 

150 
300 
100 
100) 

100 
50 

1,000 
100 
100 
200 

350 

200 

5001 

39 

500, 

500! 

600} 

loo! 

120] 

3001 

50, 


111 

350 

100 

50 

300 
300 


100| 

I 
200| 

300' 

50 

2551 
40[ 

59] 
225 
100 


10 

24 
9 

7 

174 

90 

25 

3 

35 

8 

349 
35 
12 
60 

40 

79 

940 

5 

104 

761 

42 

100 

127 

93 

25 


100 

17 

100 

62 

100 

300 

150 

72 

50 

12 

200 

196 

500 

310 

100 

35 

25 

1 

150 

323 

100 

40 

100 

535 

200 

232 

18 

100 

26 

14 

203 

275 


300 

297 

300 

716 

100 

82 

100 

79 

100 

43 

50 

35 

50 

8 

300 

130 

100 

5 

25 

115 

298 
22 

72 
21 

19 

30 

104 


351 
400 
342 
390 

1,364 

1,430 

925 


1,232 
600 

6,851 

1,052 

586 

1,370 

1,853 
2,422 
4,802 
65 
3,858 
7,592 
1,729 

623 
946 
936 
670 

480 

550 

1,182 

1,526 

401 

1,563 
2,960 

800 

92 

2,828 

875 
1,982 
3,480 

573 

2,250 

410 

338 

2,857 
3,600 
2,323 
4,818 
1,335 
525 

1,154 
353 
232 

2,788 
475 

500 

1,357 

1,860 
258 

889 
365 

672 
1,200 
1,062 


415 
625 
401 
455 


BANKS  AND  TRUST  COMPANIES 


167 


CALIFORNIA—  (Cont'd) 
Santa  Barbara — (Cont'd) 
Santa  Barbara  County  National 

Bank    

Santa  Barbara  Savings  &  Loan 

Bank    

Santa  Cruz — 

City  Savings  Bank  

First   National   Bank 

Farmers  &  Merchants  National 

Bank   

Peoples  Savings  Bank 

Santa  Cruz  Bk.  of  Sav.  &  Loan 
Santa  Cruz  Co.  National  Bank 

Santa  Maria — 

Bank  of  Santa  Maria 

First  National  Bank 

Valley   Savings  Bank 

Santa  Monica — 

Bank  of  Santa  Monica 

Merchants   National   Bank 

Santa   Rosa — 

Exchange  Bank  

Santa  Rosa  Bank  

Santa  Rosa  National  Bank. . . . 
Savings  Bank  of  Santa  Rosa.. 
Union  Savings  Bank 

Sonora — 

First  National  Bank   

Sonora  National  Bank 

Tuolumne    County    Bank 

Stockton — 
Commercial  &  Savings  Bank.. 
Farmers  &  Merchants  Bank... 

First  National  Bank 

San  Joaquin  Valley  Bank 

Stockton   Savings   Bank 


Capital 


100 

225 

100 
100 

100 
<  32 
100 
150 

200 
50 
25 

110 
50 

150 
200 
200 
283 
50 

100 
75 
50 


Sit 


id 
Profits 


113 

28 

82 
£6 

30 

38 

43 

107 

200 
42 
36 

29 
7 

117 

27 

40 

125 

32 

70 

8 

20 


Gross   |   Cross 

De-  Re- 

posits   I  sources 


30*0  204 

500  290 

200.  342 

264  458 

400  93 


730 

2,400 

1,528 
462 

184 

437 

1,331 

437 

1,750 
368 
261 

1,115 
350 


287 
450 

2,275 
1,525 
950 
3,911 
1,458 


1,161 

2,653 

1,726 
755 

318 
512 

1,487 
795 

2,300 
510 
321 

1,272 
450 


424 
550 

2,779 
2,329 
1,572 
4,758 
1,951 


932 

1,199 

965 

1,210 

1,050 

1,615 

1,687 

2,095 

655 

738 

780 

1,100 

CALI FORN I  A—  (Cont'd) 
Stockton — (Cont'd  ) 


Stockton  Savings  &   Loan  Soc. 
Union  Safe  Deposit  Bank 

Suisan — 

Bank   of   Suisan 

First   National   Bank 

Solano  County   Savings  Bank. 

Turlock — 

Commercial  Bank  

Peoples  State  Bank  

Vallejc— 

First  National  Bank    

First  Savings  Bank 

Vallejo  Commercial   Bank 


Sirp, 

I     ana 
Capital!  Profits 


500 
152 

100 

100 

25 

75 
50 

100 

40 

150 


373 
9 

581 

17 

7 

91 

18 

25 

7 

12 


ARIZONA— 

Bisbee — 

Bank  of  Bisbee 

Citizens  Bank  &  Trust  Co 

Miners  &  Merchants  Bank. . . . 

Douglas — 

Bank  of  Douglas 

First   National   Bank 

Flagstaff — 

Arizona  Central  Bank 

Citizens   Bank    

Globe — 

First   National   Bank 

Old  Dominion  Com.  Co 

Morenci — 
Gila  Valley  Bank  &  Trust  Co. . 
State  Bank  of  Morenci 

Nogales — 

First   National   Bank 

Santa  Cruz  Valley  Bk.  &  Tr.  Co 
Sonora  Bank  &  Trust  Co 


I   Surp. 

I     and 
Capital]  Profits 


Gross 

De- 
posits 


Gross 
Re- 
sources 


4,218 
524 

956 
190 

151 

897 
320 

750 

430 

1,019 


Gross 
De- 
posits 


501?  170 

50|    4 
50 1   95 


50 
100 

100 

50 

100 

22 

100 
30 

50 

31 

100 


116 

40 

67 
3 

57 
122 

127 
6 

134 

5 
6 


$  1,541 

175 

1,544 

1,186 
977 

1,315 
382 

599 
299 

2,324 
132 

2,162 
173 
709 


5,091 
696 

1,645 
380 
183 

1,078 
393 

980 

498 

1,196 


Gross 
Re- 
sources 


$  1,771 

229 

1,698 

1,366 
1,166 

1,532 
455 

909 
455 

2,558 
168 

2,398 
209 
815 


American  National  Bank 

San  Diego,  Cal. 


Capital,  Surplus  and 

Profits 

$385,000.00 


Total  Resources 
$2,500,000.00 


A  Strong  Commercial  Bank  Conducted  Along 
Conservative  and  Modern  Lines 


Ladies'  Department 
Safe  Deposit  Department 
Steamship  and  Tourist  Department 


Agents  for  all  Atlantic  and  Pacific  Steamer  Lines 

Special  Department  for  Banking  by  Mail 

Interest  Paid  on  Time  Accounts 


We  Invite  Correspondence 


Attention   is  called  to  the 
announcement  on  page  II 


168 


BANKS  AND  TRUST  COMPANIES 


ARIZONA— (Cont'd) 

Phoenix — 

National  Bank  of  Arizona 

Phoenix   National   Bank 

Phoenix  Sav.  Bk.  &  Trust  Co.. 

Prescott — 

Bank  of  Arizona 

Commercial  Trust  &  Sav.  Bk. . 

Prescott  National  Bank 

Yavapi  County  Savings  Bank.. 

Tucson — 

Arizona  National  Bank 

Consolidated  National  Bank. . . 
Merchants  Bank  &  Trust  Co.. 
Southern  Ariz.  Bk.  &  Trust  Co. 


Capital 


200 
150 
100 


50 

80 

100 

50 

100 

100 
50 

75 


Surp. 

ana 

Profits 


200 
222 

64 


194 
20 

205 
31 

35 

148 

30 

59 


Gross 
De- 
posits 


I    Gross 
Re- 
sources 


1,220 

1,677 

627 


1,124 
555 
976 
603 

819 

1,522 

466 

830 


1,911 

2,245 
795 


1,368 
655 

1,385 
684 

1,092 

1,874 

546 

968 


N  EVADA—  (Cont'd) 


IDAHO— 


Boise — 

Boise  City  National  Bank 

Boise  Title  &  Trust  Co 

First  National  Bank 

Idaho  National   Bank 

Idaho  Trust  &  Savings  Bank... 
Pacific  National  Bank 

Lewiston — 

Empire  National  Bank 

First  National   Bank 

Idaho  Trust  Co 

Lewiston   National   Bank 

Wallace — 

First   National   Bank 

Wallace   National   Bank 


Capital 


Surp. 

and 

Profits 


I 


250 
100 
300 
100 
200 
300 

100 
100 

50 
100 

100 

100 


249 
10 

380 
25 
11 

144 

15 
73 
10 
55 

85 
43 


Gross 
De- 
posits^ 


Gross 
Re- 
sources 


$2,280 

77 

1,826 

266 

509 

973 

250 

1,511 

101 

800 

1,317 

2,062 


$3,025 
203 

2,706 
517 
720 

1,717 

475 
1,784 

164 
1,000 

1,590 

2,255 


Goldfield— 
John  S.  Cook  &  Co 

Reno — 
Bank  of  Nevada  Savings  &  Trust 

Co 

Farmers    &    Merchants    National 

Bank    

Nixon   National   Bank 

Scheeline  Banking  &  Trust  Co.. . 
Washoe  County  Bank 

Winnemucca — 

First  National  Bank 

Winnemucca  State  Bank 


Capital 


250 


100 

200 
700 
120 
500 

100 

100 


Surp.  I  Gross  I  Gross 

and    I     De-    I     Re- 

Profits\  posits  \sources 


10 


10 

30 

7 

30 

208 

235 
3 


1,063 


1,426 

1,120 

1,976 

595 

1,699 

1,500 
130 


1,336 


1,537 

1,550 

3,426 

830 

2,451 

1,900 
233 


OREGON- 


NEVADA— 


Elko— 
First   National   Bank... 
Henderson  Banking  Co. 


Capital 


Surp.  I   Gross  I  Gross 
and    )     De-    I     Re- 
Profits]  posits  \sources 


100J5 
1001 


20 
147 


$    489 
2,000 


$    709 
2,300 


Albany — 

Albany  State  Bank 

First  National  Bank 

First  Savings  Bank 

J.  W.  Cusick  Co 

Astoria — 

Astoria  National  Bank 

Astoria  Savings  Bank 

First  National  Bank 

ScandinavianAmerican   Sav.   Bk. 

Baker — 

Baker  Loan  &  Trust  Co 

Citizens  National  Bank 

First  National  Bank 

Corvallis — 
Benton  County  National  Bank... 

Corvallis  State  Bank  

First   National   Bank 

Eugene — 

Bank  of  Commerce 

Eugene  Loan  &  Savings  Bank . . . 

First  National   Bank 

U.   S.  National  Bank 


Capital 

Surp. 

and 

Profits 

Gross 
De- 
posits 

$       60 

$        6 

$     167 

100 

114 

700 

50 

3 

445 

75 

18 

352 

50 

59 

1,112 

130 

155 

1,400 

100 

35 

840 

75 

31 

550 

50 

56 

634 

100 

19 

370 

200 

200 

1,160 

60 

19 

475 

100 

3 

125 

50 

55 

605 

50 

12 

301 

100 

115 

716 

100 

225 

1,400 

100 

16 

500 

Gross 

Re- 

sources 


$    172 

1,075 

503 

445 

1,262 

1,700 

1,020 

656 

740 

595 
1,760 

609 
235 

767 

363 

965 

1,950 

617 


The 


Northwestern  National  Bank 

OF  PORTLAND,  OREGON 


Total  Resources  over  $3,600,000 


We  will  answer  gladly  any  inquiries  regard- 
ing the  Resources,  Investments  and  Indus- 
trial  Prospects  of  the  Pacific  Northwest. 


H.  L.  PITTOCK 


JOHN  TWOHY  .  . 
F.  W.  LEADBETTER 
EMERY  OLMSTEAD 


Vice  President 
Vice  President 
Vice  President 


President 

EDGAR  H.  SENSENICH  .  .  .  Cashier 
ROY  H.  B.  NELSON  .  .  .  Asst.  Cashier 
O.  L.  PRICE  .     .     .    Asst.  to  the  President 


Attention  is  called  to  the 
announcement  on  page  II 


BANKS  AND  TRUST  COMPANIES 


169 


OREGON—  (Cont'd) 


Capital 


La  Grande — 

La  Grande  National  Bank 200 

U.  S.  National  Bank 100 

Marshfield — 

First  National  Bank  of  Coos  Bay  100 

Flanagan   &  Bennett  Bank 50 

Medford — 

Farmers  &  Fruitgrowers  Bank..  50 

First  National   Bank 100 

Jackson  County  Bank 100 

Medford   National  Bank 100 

Oregon  City — 

Bank  of  Oregon  City 50 

First  National  Bank 50 

Pendleton — 

American  National  Bank 300 

First  National   Bank 250 

Portland — 

Ashley  &  Rumelin   j  50 

Bank  of  Kenton |  50 

Bank  of  Sellwood 50 

Geo.  W.  Bates  &  Co 100 

Citizens  Bank  100 

East   Side  Bank 50 

First   National   Bank 1,500 

Hartman  &  Thompson 100 

Hibernia   Savings   Bank 200 

Ladd  &  Tilton  Bank 1,000 

Lumbermen's  National   Bank....  1,000 

Lumbermen's   Trust   Co 500 

Merchants  National  Bank 500 

Montavilla  Savings  Bank 50 

Multnomah  State  Bank 15 

The  Northwestern  National  Bank  500 

Portland  Trust  &  Savings  Bank.  300 

Scandinavian  American   Bank...  100 

Security  Savings  &  Trust  Co 250 

United  States  National  Bank 1,000 


Surf.  |  Gross  I  Gross 

and         De-    I     Re. 

Profits\  posits  |  sources 


60 

14 

20 
70 

3 
57 
90 
40 

6 
85 

130 
300 

5 

5 

6 

8 

19 

32 

1,150 

18 

93 

1,300 

233 

134 

110 

3 

3 

112 

52 

25 

220 

1,292 


750 
400 

679 
617 

145 
651 
560 
600 

368 
841 

1,700 
2,500 

170 
175 
197 
682 
670 
500 

17,498 

389 

2,701 

13,200 
5,212 


4,310 

49 

49 

3,457 

1,275 

1,717 

637 

9,195 


1,075 
600 

911 
818 

202 
950 
750 
900 

424 

1,059 

2,500 
3,200 

226 

230 

253 

792 

790 

582 

22,697 

507 

3,040 

15,500 

6,696 

648 

4,920 

103 

100 

4,155 

1,627 

1,842 

1,186 

12,778 


OREGON— (Cont'd) 

Salem — 
Capital  National  Bank... 
Salem  Bank  of  Commerce 

U.  S.  National  Bank 

Ladd  &  Bush  

The  Dalles — 

First  National  Bank 

French   &  Co 


t'fj/'i'(j/ 


125 

50 

100 

500 

100 
200 


Surp. 

and 

Profits 


37 

5 

llO 

121 

133 
135 


Gross 
De- 
posits 


787 

226 

1,125 

2,275 

691 

882 


Gross 
Re- 
sources 


1,049 

281 

1,500 

2,950 

1,027 
1,221 


WASHINGTON— 

Aberdeen — 

Chehalis  County  Bank 

United  States  Trust  Co 

Hayes  &  Hayes 

Bellingham — 
Bellingham  National   Bank... 

First  National  Bank 

Northwestern  National  Bank. 
Northwestern  State  Bank 

Centralia — 
Farmers   &  Merchants  Bank. 

Field  &  Lease   

Union  Loan  &  Trust  Co 

Chehalis — 

Chehalis  National  Bank 

Coffman,  Dobson  &  Co 

Security  State  Bank  

Colfax — 

Colfax  National  Bank  

Colfax  State  Bank 

Farmers  National  Bank 

First  Savings  &  Trust  Bank . . 

Dayton — 
Broughton  National  Bank.... 
Columbia  National  Bank 

Everett — 
Bank  of  Commerce 


Capital 


25 

50 

250 

200 
200 
100 
100 

75 
25 
50 

50 
50 
25 

200 
60 

100 
50 

50 
100 

100 


Surp.  I  Gross 

and         De- 

Profits\  posits 


Gross 
Re- 
sources 


1 

17 
56 

280 

136 

11 

29 

6 
21 
15 

8 

165 

24 

40 

7 

50 

22 

12 
146 

25 


!  200 

280 

2,079 

1,500 

1,845 

590 

1,112 

255 
120 

280 

242 

1,050 

232 

1,040 
133 
628 
486 

240 
838 

750 


!  226 

351 

2,372 

2,146 

2,230 

700 

1,241 

336 
166 
350 

320 

1,220 

282 

1,560 
206 
854 
563 

325 
1,211 

850 


HOGE  BUILDING 

Owned  and  occupied  by  the 

Union  Savings  &  Trust  Company 


UNION  SAVINGS 

&  TRUST  COMPANY 

OF  SEATTLE,  U.  S.  A. 


Capital  and  Surplus,  $800,000.00 
Total  Assets  over,   $4,500,000.00 


PUGET    SOUND    and     ALASKA 
business  handled  with  prompt- 
ness and  efficiency. 


Our  BOND  DEPARTMENT,  under 
an  experienced  manager,  specializes  in  the 
MUNICIPAL,  RAILROAD,  PUB- 
LIC SERVICE  AND  TIMBER 
BONDS    of    the    Pacific    Northwest. 


JAMES  D.  HOGE, 

President. 


N.  B.  SOLNER, 

Cashier. 


Attention  is  called  to  the 
announcement  on  page  II 


170 

WASHINGTON—  (Cont'd) 

Everett — (Cont'd) 

Citizens  Bank  &  Trust  Co 

Everett  Trust  &  Savings  Bank. . 
First   National  Bank 

Hoquiam — 

First  National  Bank 

Lumberman's-  Bank   

North  Yakima — 

First  National  Bank   

Central  Bank  &  Trust  Co 

Yakima  National  Bank 

Yakima  Trust  Co 

Yakima  Valley  Bank 

Olympia — 

Capital  National  Bank 

Olympia  National  Bank  

Seattle— 
Amer.  Savings  Bank  &  Trust  Co. 

Bank  for  Savings  in  Seattle 

Broadway  State  Bank  

Citizens  Bank    

Dexter  Horton  National  Bank... 
Dexter  Horton  Trust  &  Sav.  Bk. 

First  National   Bank 

Fremont  State  Bank 

German-American  Bank   

Green  Lake  State  Bank 

Japanese  Commercial   Bank 

King  County  State  Bank 

Metropolitan   Bank   

Mortgage  Trust  &  Savings  Bank 
National  Bank  of  Commerce.... 

National  City  Bank 

Northern  Bank  &  Trust  Co 

Northwest  Trust  &  Safe  Deposit 

Co 

Oriental-American  Bank  

Peoples  Savings  Bank 


BANKS  AND  TRUST  COMPANIES 


Capital 

Surp. 

and 

Profits 

29 

Gross 
De- 
posits 

Gross 
Re- 
sources 

100 

271 

400 

25 

36 

425 

492 

250 

101 

3,046 

3,615 

100 

126 

1,192 

1,469 

100 

27 

431 

558 

100 

225 

2,000 

2,500 

50 

3 

179 

255 

50 

227 

1,381 

1,658 

100 

21 

421 

550 

100 

89 

598 

712 

100 

179 

1,564 

1,936 

50 

89 

542 

705 

600 

85 

2,150 

2,835 

400 

21 

660 

1,075 

25 

6 

150 

188 

25 

1 

159 

197 

1,200 

280 

9,761 

11,289 

400 

150 

6,600 

7,300 

300 

146 

4,643 

5,226 

50 

3 

145 

213 

200 

5 

760 

1,030 

25 

12 

142 

179 

50 

36 

462 

549 

20 

1 

70 

91 

100 

136 

2,163]  2,413 

100 

7 

1,373 

1,480 

1,000 

1,250 

10,876 

13,511 

500 

150 

2,000 

2,700 

100 

45 

1,250 

1,435 

100 

24 

1,101 

1,225 

40 

2 

197 

239 

100 

238 

2,327 

2,665 

WASHINGTON— (Cont'd) 
Seattle — (Cont'd) 


Rainier  Valley  State  Bank 

Scandinavian-American  Bank   . . . 

Seattle  National   Bank 

Seattle  Trust  Co 

State  Bank  of  Seattle 

Union  Savings  &  Trust  Co 

University  State  Bank   

West  Seattle  State  Bank 

Spokane — 

Exchange  National  Bank  

Farmers  &  Mechanics  Bank 

Fidelity  National  Bank 

National  Bank  of  Commerce.... 

Old   National   Bank    

Scandinavian-American  Bank  . . . 
Spokane  &  Eastern  Trust  Co.... 

Spokane  State  Bank   

Union  Park  Bank 

Union  Trust  &  Savings  Bank. . . . 
Washington  Safe  Dep.  &  Tr.  Co. 

Tacoma — 
Fidelity  Trust  Company  Bank... 

Bankers  Trust  Co 

National  Bank  of  Tacoma 

North   Pacific  Bank 

Puget  Sound  State  Bank 

Tacoma  Sav.  Bank  &  Trust  Co.. 

Vancouver — 

United  States  National  Bank 

Vancouver  National  Bank 

Washington  Exchange  Bank 

Walla  Walla— 

Baker-Boy er  National  Bank 

Farmers    Savings   Bank 

First  National   Bank 

Peoples  State  Bank 

Third  National  Bank   


Capital 

"25 

500 

1,000 

250 

100 

600 

50 

10 

1,000 

50 

200 

200 

1,000 

100 

300 

50 

25 

500 

100 

500 
300 
1,000 
25 
100 
200 

100 

100 

50 

100 
200 
200 
50 
100 


Surp. 

and 

Profits 


3 

559 

405 

82 

30 

230 

5 

1 

317 

9 
66 
20 

547 
40 

702 

15 

2 

104 

142 


Gross 
De- 
posits 


144 
11,018 
12,324 


1,306 

3,850 

510 

60 

4,812 

285 

2,145 

600 

10,185 
750 

12,547 
200 
105 
671 


Gross 
Re- 
sources 


172 

12,078 

14,729 

345 

1,437 

4,660 

565 

75 

7,129 
345 

2,638 

1,000 

12,733 

890 

13,548 

265 

132 

6,683 
331 


506j  3,808]  4,839 

35   765  1,100 

185!  8,0001  9,700 


26 
38 
31 

30 

25 

4 

243 
114 
312 

25 
22 


175 
742 
904 

450 
615 

224 

1,801 
716 

1,410 
475 
579 


228 

872 

1,135 

615 

922 
286 

2,194 

1,000 

2,100 

566 

726 


Babcock.  Rushton  &  Go. 


Stocks,  Bonds 
Investment  Securities 


MEMBERS 
NEW  YORK  STOCK  EXCHANGE 
CHICAGO  STOCK  EXCHANGE 
CHICAGO  BOARD  OF  TRADE 


"The  Rookery" 
Chicago 


7  Wall  Street 
New  York 


THE  CALIFORNIA 
NATIONAL  BANK 

Of  Sacramento,  California 

Was  born  in  1882  and 
has  total  resources  of 

MORE  THAN  TEN  MILLIONS 


Directors : 
W.  E.  GERBER  FRED  W.  KIESEL 

GEORGE  W.  PELTIER     G.  A.  WHITE 
W.  A.  CURTIS  EDWARD  H.  GERBER 

F.  J.  RUHSTALLER  H.  A.  HEILBRON 

PETER  BOHL 

Officers  : 
W.  E.  GERBER President 

George  W.  Peltier Vice-President 

W.  A.  CURTIS Vice-President 

FRED  W.  KIESEL Cashier 

EGBERT  A.  BROWN Assistant  Cashier 

FRED  L.  MARTIN Assistant  Cashier 

J.  I.   BRUNSCHWILER Assistant  Cashier 


Attention  is  called  to  the 
announcement  on  page  II 


DESCRIPTIVE 
SECTION 


17  2 


TRACTORS  AND  HARVESTING  MACHINERY 


Descriptive 

Advertising 

Section 


Geo.   Drumheller  of  Walla  Walla,  Wash.,  aims  yearly  to  secure  the  largest  wheat  check   ever  given  to   an   individual.      All   told,  he  has 
purchased    nine  of   these   Holt    Combined   Harvesters   since    1899.      His  1913  wheat  check  was  for  173,431   bushels,  amounting  to  $137,632.24. 


A  UNIQUE  CALIFORNIA  INDUSTRY. 

The  Holt  Manufacturing  Company,  at  Stockton,  Has  World 

Market  for  Farm  Machinery  Specialties — Caterpillar 

Tractors  and  Combined  Harvesters. 

By  L.  E.   Webster. 

We  expect  the  daring — the  unconventional — from  Cali- 
fornia, the  unusual  State.  We  look  for  surprises.  We  take 
for  granted  a  change  of  climate  from  tropical  to  arctic  as 
we  ascend  a  main-traveled  highway,  and  are  not  aston- 
ished at  the  "57  varieties"  of  agriculture  we  note  along 
the  road.  Therefore,  we  should  probably  have  been  disap- 
pointed to  find  California's  largest  farm-machinery  con- 
cern— in  fact,  the  largest  on  the  Pacific  Coast — follow- 
ing the  conventional  lines  of  eastern  manufacturers  of 
similar  products.  But  Benjamin  Holt,  the  dominating 
mechanical  mind  of  The  Holt  Manufacturing  Company, 
is  essentially  a  pioneer,  and  while  sales  and  financial 
policies  have  necessarily  been  more  or  less  tempered  by 
external  conditions,  the  products  of  the  factories  are 
typically   Californian   in   their   distinctiveness. 

Many  years  ago  "Ben"  Holt  saw  a  header  cutting  bar- 
ley, while  a  big  stationary  threshing  outfit  in  the  same 
field  separated  the  grain  from  the  straw.  "Those  two 
machines  ought  to  be  in  one,"  he  said,  and  set  about  to 
combine  them.  His  neighbors  and  associates  objected 
vigorously,  but  Holt  had  a  factor  of  obstinacy  of  the 
kind  possessed  by  McCormick  and  Edison.  He  built 
the  combined  harvester,  perfected  it,  and  left  it  for  oth- 
ers to   market. 

Steam  became  a  necessity  for  plowing  and  freighting. 
The  Holts  made  steam-plowing  outfits  as  a  matter  of 
everyday  routine,  years  before  the  opening  prairies  of 
Kansas,  the  Dakotas  and  Canada  stimulated  eastern 
thresher  manufacturers  to  build  plowing  engines.  Holt 
engines  pulled  the  Holt  harvesters.  They  furnished 
steam  for  auxiliary  motors  on  the  harvesters  long  before 
the  gasoline  motor  came  into  its  own.  Other  motors  on 
heavy  wagons — all  fed  from  the  tractor  boiler— helped 
move  big  ore  and  lumber  trains  over  steep  mountain 
grades.  Holt  built  wagons— there  were  no  others  equal 
to  the  severe  demands. 

Stockton,  the  principal  seat  of  the  business,  lay  at  the 
gateway  to  the  great  valleys  of  the  Sacramento  and  the 
San  Joaquin,  in  early  days  the  greatest  wheat  country 
in  the  world.  It  was  a  new  country,  with  no  machine 
shops  at  the  cross-roads,  and  few  mechanics  outside  of 
the  cities— a  great  rough  country,  its  great  branches  run 
by  masterful  men,  who  drove  their  way  to  fortune  with 
a  smashing  hand.  And  Holt  built  big,  rugged  machines 
that  withstood  all  manner  of  use  and  abuse. 

The  hills  of  California,  Oregon  and  Washington  grew 
splendid  grain,  but  it  was  left  to  the  Holts  to  adapt  their 
harvester  for  safe  use  on  steep  hillsides,  and  thus  add 
hundreds  of  thousands  of  acres  to  the  available  crop 
area. 


THE   GAS   HARVESTER. 

Gasoline  came  to  replace  steam.  Horses  and  feed  rose 
in  price,  and  hot  weather  annually  took  its  toll.  The 
Holt  answer  was  a  separate  gas  engine  mounted  on  the 
harvester  frame.  The  engine  drove  the  cutter  bar  and 
threshing  mechanism— half  the  horses  then  pulled  the 
machine.  It  cost  less,  and  saved  the  down  and  tangled 
grain  besides,  for  stopping  the  horses  no  longer  stopped 
the  cutting  and  threshing.  Sales  of  the  horse  harvester 
fell  rapidly  before  the  gas  harvester's  advance,  and  own- 
ers of  old  models  overtaxed  the  Holt  manufacturing  fa- 
cilities in  their  eagerness  to  add  this  improvement  and 
be  profitably  up-to-date. 

So  firmly  established  has  the  Holt  Combined  Har- 
vester become  that  it  is  safe  to  say  90  per  cent  of  the 
grain  harvested  in  California,  and  three-quarters  of  all 
grown  on  the  Pacific  Coast,  passes  through  its  capacious 
maw.  California  alone  kept  3,500  of  these  monsters  at 
work  for  months,  gathering  this  season's  crop. 

The  history  of  this  aggressive  concern  dates  back  to 
the  sixties,  when  Charles  H.  Holt  and  Harrison  Holt  pooled 
their  savings  and  started  a  hardwood  lumber  and  wagon 
material  business  in  San  Francisco.  Charles  stayed  in 
the  West,  the  other  brother  going  back  to  the  home 
town  of  Concord,  N.  H.,  as  buyer  for  the  firm.  Two  other 
brothers,  Frank  and  Benjamin,  later  joined  The  Holt 
Brothers  Company  as  partners,  Benjamin  coming  to  Cal- 
ifornia in  1883,  when  the  trade  in  the  Golden  State 
seemed  to  justify  a  factory  on  the  ground.  Strangely 
enough,  the  dry  climate  that  set  the  spokes  a-rattling  on 
prairie  schooners  in  the  "Valley,  is  to  blame  for  Stock- 
ton's taking  away  from  the  foggy  Golden  Gate  the  wheel 
works  that  has  grown  into  a  concern  of  such  splendid 
proportions. 

SMALL    BEGINNINGS. 

Yankee-bred,  with  New  England  notions  of  thrift,  the 
Holts  grew  under  the  influence  of  the  large  ideas  that  Cali- 
fornia breeds  in  men,  and  their  progress  was  steady  and 
sure.  Charles,  the  business  man,  and  Benjamin,  the 
inventor  and  mechanic,  built  well.  One  by  one  competi- 
tors sprang  up,  flourished  awhile  and  fell.  The  Holts' 
only  notice  was  to  make  arrangements  to  supply  extras  for 
the  machines  left  in  the  field  without  a  parent — a  consist- 
ent policy  which  has  won  countless  friends  and  customers 
among  the  users  of  twenty-odd  makes  of  harvesters  and 
engines,  and  a  comfortable  profit  besides. 

Close  by  Stockton  lay  the  fertile  delta  islands,  seem- 
ingly more  fit  for  the  production  of  frogs  and  tule  thick- 
ets than  of  wheat.  But  wide  wheels  on  engines  and  har- 
vesters brought  these  lands  into  profitable  subjection. 
Six— twelve— even  eighteen  feet  of  wheels  on  either  side  of 
a  tractor— veritable  monsters  of  the  ranch— sent  barge 
load  upon  barge  load  of  grain  up  the  Stockton  Channel 


Descriptive 

Advertising 
Section 


TRACTORS  AND  HARVESTING  MACHINERY 


173 


to  the  railroad  and  down  the  river  to  the  bay  and  wait- 
ing ships.  But  the  Holts  dreamed  of  a  narrower  wheel 
— not  so  high,  not  so  wide — and  finally  threw  away  wheels 
altogether.     Thus  the  Caterpillar  track  was  born. 


Holt  Self-Propelled  Harvestci  operating  on  Arthur  D.  Jones' 
ranch  near  Spokane,  Wash.  The  last  word  in  combinations — a  com- 
bined harvester   embodying  a  tractor.      Made  only   by   Holt. 

The  "Caterpillar,"  as  the  Holts  and  their  followers 
know  it,  is  not  the  larva  of  a  dainty  bat-wing  butterfly, 
but  the  vital  principle  of  a  neat,  compact  tractor  of 
strikingly  unique  design.  The  Caterpillar  track  is  an 
endless  belt  of  steel  segments,  which  the  tractor  lays 
down,  rolls  forward  upon,  and  picks  up  again.  With  it, 
The  Holt  Manufacturing  Company  again  created  a  new 
industry,  and  opened  up  to  cultivation  by  cheap  mechan- 
ical power  vast  tracts  that  could  not  be  farmed  at  all, 
or  at  least  with  great  difficulty,  by  the  use  of  animals. 

THE   CATERPILLAR    TRACTOR. 

Briefly,  the  Caterpillar  is  a  tractor  for  pulling  plows, 
harrows,  seeders,  harvesters,  wagons  or  other  machin- 
ery; for  building  roads;  for  threshing,  and  filling  silos; 
crushing  rock;  uprooting  stumps;  building  levees;  haul- 
ing cannon  or  mixing  concrete;  shunting  cars  or  baling 
hay;  clearing  sage  brush  and  pumping  water  to  make 
the  desert  bloom.  With  the  proper  tools,  it  has  a  va- 
riety of  uses  so  great  as  to  defy  an  attempt  to  catalog 
them.  It  does  all  the  work  of  an  ordinary  tractor  or 
stationary  engine.  It  does  infinitely  more,  because,  ow- 
ing to  the  length  and  breadth  of  its  supporting  track,  it 
can  work  over  land  on  which  a  horse  cannot  safely  walk, 
and  through  conservation  of  power  it  can  surmount 
grades  impassable  to  any  old-style  tractor  of  feasible 
motor  power. 

There  is  no  separate  field  for  the  Caterpillar.  Its  ad- 
vantages appeal  to  every  user  of  tractive  power,  and  its 
owners  include  farmers;  contractors;  highway  commis- 
sions; counties,  townships  and  municipalities;  armies 
and  railways;  lumbermen;  drainage  and  reclamation  or- 
ganizations; agricultural  colleges;  great  sugar  compa- 
nies;   and   others   having   similar   power   needs. 

The  site  of  the  world's  largest  reservoir,  that  of  Great- 
er New  York,  was  cleared  by  yanking  out  acres  of  trees 
with  the  Caterpillar.  The  famous  Los  Angeles  Aqueduct 
was  completed  well  within  estimates,  largely  because 
twenty-eight  Caterpillars  cut  the  cost  of  hauling  materi- 
als across  the  Mojave  Desert  to  one-third  the  horse-haul 
figure.  Arthur  Brisbane,  the  great  Hearst  editorial 
writer,  first  by  a  challenge  to  all  manufacturers,  and 
then  by  a  sweeping  editorial  statement,  has  drawn  wide- 
spread attention  to  the  success  of  the  tractor  on  his  New 
Jersey  farm. 

The  American  Beet  Sugar  Company  bought  seven  Cat- 
erpillars, and  stopped  importing  30,000-dollar  English 
cable-plowing  outfits.  The  U.  S.  and  Russian  governments, 
the  Southern  Pacific  Railway,  and  a  list  of  millionaire 
farmers  that  resembles  the  Social  Register,  have  testi- 
fied by  purchases  to  the  outstanding  quality  of  the  tractor. 

WORLD-WIDE    EXPORTS. 

The  Caterpillar  is  now  used  on  every  continent,  from 
Nome  to  Cape  Horn,  and  from  Manila  to  St.  Petersburg. 


It  is  working  in  Australia,  the  Philippines,  Mexico,  Chile, 
Hawaii,  Argentina,  Cuba,  India,  South  Africa,  Algeria,  Rus- 
sia, Austria,  Hungary,  Germany,  Spain,  Belgium — in  fact, 
in  every  great  agricultural  district  in  the  world.  Fourteen 
foreign  agents  are  financing  its  successful  introduction, 
with  the  help  of  the  company's  experts  or  service  men, 
and  semi-cccasional  visits  of  sales  representatives,  who  In- 
variably have  technical  training,  and  thus  combine  engi- 
neering investigations  with  their  other  duties. 

It  is  freely  predicted  that  Inside  of  25  years  the  Cater- 
pillar principle  will  prevail  in  the  tractor  field,  owing  to 
its  advantage  of  being  useful  in  soft  ground  where  wheel 
tractors  fail  to  get  a  footing,  and  to  the  additional  per- 
centage of  motor  power  which  it  transforms  into  tractive 
effort,  or  pull.  The  early  difficulties  of  complicated  de- 
sign and  excessive  wear  have  been  successfully  over- 
come. The  cost  of  manufacture,  and  consequent  selling 
price,  has  reached  a  competitive  basis,  and  the  enthusi- 
astic loyalty  of  the  two  thousand-odd  owners  of  Caterpil- 
lar tractors  has  given  the  machine  a  wide  appeal. 

A  Caterpillar,  however,  is  useful  only  when  furnishing 
power  to  an  operative  tool  or  machine.  The  Holt  Com- 
pany has  long  been  aware  of  the  advantages  of  selling  in 
every  case  a  complete  outfit  of  dependable  quality,  and 
its  disc  plows,  moldboard  plows  (the  universal  "Stock- 
ton Gang"),  harrows,  scrapers,  freight  wagons,  etc.,  are 
important  factors  in  the  success  of  the  Stockton  plant. 

Latest,  but  by  no  means  last  nor  least,  the  company  has 
now  reached  the  apparent  climax  in  combinations,  that 
of  a  Caterpillar  Tractor  with  a  combined  harvester.  The 
self-propelled  harvester  reverses  the  original  order,  the 
mounted  motor  running  the  tractor  parts  as  well  as  the 
knife  and  separator.  Here  is  independence  of  animal 
power — and  of  human  labor — carried  to  the  extreme,  and 
again  Holt  has  a  clear  field.  The  idea  is  too  daring  as 
yet  for  imitation. 

The  Caterpillar  name  and  trademark  are,  undoubtedly, 
two  of  the  company's  most  valuable  assets.  They  have 
been  protected  in  all  civilized  countries  and  the  transla- 
tions in  the  different  languages  are  included  in  the  protec- 
tion. For  instance,  in  France  the  Caterpillar  is  known  as 
"La  Chenille";  in  Latin  countries,  as  "Oruga";  in  Ger- 
many, as  "der  Raupe";  etc.  The  aggressive  use  of  this 
name,  and  its  fitness  in  suggesting  the  action  of  the  pro- 
pelling track  has  resulted  in  its  general  adoption  as  de- 
scriptive of  all  machines  of  this  or  similar  type — in  one 
way  unfortunate,  yet  in  another  productive  of  intensely 
more  rapid  popularization  of  the  Caterpillar  idea. 

CAREFUL   EXPANSION. 

The  Company  has  always  followed  a  conservative  qual- 
ity of  expansion,  first  starting  out  toward  the  North,  and, 
four  years  ago,  to  the  East,  then  to  foreign  countries.    It 


Two  45-h.  p.  Caterpillars  in  the  Mojave  Desert,  freighting  ma- 
terial for  the  Los  Angeles  Aqueduct,  one  of  the  engineering  wonders 
of  the  world. 

is  rather  remarkable  that,  of  all  substantial  farm  machin- 
ery companies  in  America,  The  Holt  Manufacturing  Com- 
pany is  the  first  one  to  develop  west  of  the  Rocky  Moun- 
tains and  invade  the  East  from  that  stronghold. 


174 


TRACTORS  AND  HARVESTING  MACHINERY 


Descriptive 

Advertising 

Section 


The  eastern  plant,  at  Peoria,  111.,  Is  devoted  entirely  to 
the  production  of  Caterpillars  for  the  tributary  trade  and 
Atlantic  exports.  This  auxiliary  plant  is  of  further  dis- 
tinct advantage  in  securing  the  Company's  output  against 
unfavorable  local  conditions  in  the  labor  or  material  mar- 
kets. At  the  present  time  this  plant  makes  only  the  30 
and  60-horsepower  models,  while  at  Stockton  the  sizes 
include  also  a  15  and  a  75-horsepower  size. 

The  Peoria  plant  was  purchased  from  the  Colean  Manu- 
facturing Company,  which  had  equipped  it  for  the  building 
of  steam  traction  engines  and  threshers.  It  is  splendidly 
situated  as  to  railroad  facilities,  and  the  buildings  and 
equipment  are  unusually  well  arranged  for  economical  pro- 
duction. 

FACTORY  ORGANIZATION. 

The  factory  at  Stockton,  with  yards  and  storage  houses, 
covers  an  area  of  seven  city  blocks.  The  buildings  are 
of  as  substantial  nature  as  the  mild  climate  demands.  The 
shop  equipment  is  modern  in  every  respect,  although  in- 
stalled with  due  regard  for  the  basic  idea  of  thrift  and  the 
practical  needs  of  manufacture.  In  short,  there  are  no 
frills,  but  all  of  the  necessities. 

The  factory  staff  has  been  well  selected.  Besides  an 
experienced  photographer  and  a  chemist,  the  Company  has 
an  engineering  corps  which,  though  largely  made  up  of 
native  Californians,  has  been  educated  in  the  best  uni- 
versities of  the  United  States,  and  has  had  the  advantage 
of  study  and  field  experience  in  Europe  and  South  Amer- 
ica, as  well  as  in  Canada  and  the  United  States. 

The  number  of  employees 
varies  with  the  season, 
ranging  from  600  to  750  at 
Stockton  during  the  peak 
of  the  late  spring  months, 
and  from  125  to  200  at 
Peoria.  Counting  the  field 
sales  force,  the  total  is 
about  1,000  at  the  highest 
point  of  the  year.  There 
is  a  very  small  percentage 
of  transient  laborers,  the 
great  bulk  being  permanent 
residents,  and  a  large  num- 
ber own  their  own  homes. 
At  Stockton,  particularly, 
sufficient  time  has  elapsed 
to  allow  of  long  individual 
experience,  and  the  Com- 
pany is  fortunate  in  its 
large  corps  of  workers  who 
have  been  on  the  payroll 
ten,  twenty  and  even  forty 
years. 

The  wage  scale  is  satisfactory  to  both  employed  and 
employer,  and  labor  troubles  have  been  few  and  unimpor- 
tant. The  men  respond  promptly  to  safety  measures  and 
are  unusually  faithful  in  utilizing  the  numerous  safety 
devices  installed,  as  well  as  in  co-operating  with  the  Com- 
pany in  the  settlement  of  accident  claims.  The  Stockton 
employees'  picnic,  last  June,  was  attended  by  over  three 
thousand  people,  including  families  of  the  workmen,  and 
a  monster  parade,  organized  by  men  in  the  shops,  publicly 
demonstrated  a  splendid  esprit  de  corps. 

SENSIBLE  SALES  POLICY. 

The  Holt  sales  policy  is  as  unique  in  the  agricultural 
field  as  the  machines  it  covers.  Contrary  to  the  long-term, 
partial-payment  policy  of  its  large  eastern  competitors,  the 
Holt  practice  produces  short  term  or  cash  sales.  Cus- 
tomers' notes  maturing  a  year  or  more  from  date  of  sale 
are  rare — so  rare  that  their  absence,  with  a  rigid  credit 
policy,  renders  a  formal  collection  department  unneces- 
eary,  and  losses  are  practically  nothing.  As  a  result  of 
this  policy  a  large  volume  of  sales  is  possible,  practically 
equaling  each  year  the  capital  and  surplus  invested,  as 
compared  with  a  ratio  of  one  dollar  of  sales  to  two  of 
capital  and  surplus  in  the  farm  machinery  industry  as  a 
whole. 


The  sales  organization  is  well-balanced,  and  is  managed 
from  three  central  points,  Stockton,  Calif.,  Spokane, 
Wash.,  and  Peoria,  111.  Other  branches,  and  district  agen- 
cies covering  one  or  more  states,  are  maintained  at  San 
Francisco,  Los  Angeles,  Portland,  Walla  Walla,  and  Cal- 
gary in  the  West,  and  Fargo,  Denver,  Omaha,  Wichita, 
New  Orleans  and  New  York,  in  the  East. 

A  consistent  advertising  campaign  is  being  conducted 
from  the  home  office,  making  use  of  farm,  thresher,  imple- 
ment dealer,  engineering,  highway,  lumber,  sugar,  mining, 
and  export  journals,  in  addition  to  a  monthly  magazine  to 
prospects,  and  a  well-directed  follow-up  of  catalogs,  fold- 
ers and  dictated  correspondence.  Perhaps  the  most  unique 
and  successful  form  of  advertising  employed  is  that  of 
moving  pictures.  By  the  use  of  portable  Edison  Kineto- 
scopes,  any  office  of  the  Company  can  show  Holt  machin- 
ery in  operation,  as  well  as  details  of  construction  that 
can  scarcely  be  visualized  otherwise. 

Consistent  with  its  position  of  leadership,  the  Company 
is  installing  a  splendid  exhibit  at  the  Panama-Pacific 
Exposition.  The  entire  area  of  Section  7,  Agricultural 
Palace,  will  be  devoted  to  a  display  of  Holt  products  and 
the  entertainment  of  visitors.  The  Company  will  exhibit 
also  at  the  San  Diego  Exposition. 

ADMINISTRATION. 

The  Company  still  maintains  its  headquarters  at  Stock- 
ton, where  are  located  Benjamin  Holt,  President;  P.  E. 
Holt,  Vice-President  and  General  Manager;  P.  Ehrenfeldt, 


Secretary;    C.  L.  Neumiller, 
sary  home  office  employees. 


45-h.   p.   Caterpillar  with  a  load  of  logs  in  woods  at   Newport,  Wash. 


General  Counsel;  and  neces- 
The  Board  of  Directors  com- 
prises Benjamin  Holt,  P.  E. 
Holt,  C.  L.  Neumiller,  C. 
Parker  Holt,  Treasurer,  San 
Francisco,  Calif.;  T.  F.  Bax- 
ter, Boston,  Mass.;  Ben  C. 
Holt,  Spokane;  M.  M. 
Baker,  Vice-President  and 
Manager  Eastern  Division, 
Peoria,  111.;  R.  S.  Springer, 
Vice-President  and  Manager 
Northern  Division,  Spokane, 
Wash.;  and  D.  N.  Gilmore, 
Stockton,  Calif.  With  few 
exceptions,  the  executive 
positions  in  the  Western 
Division  are  cared  for  by 
the   general   officers. 

A  tremendous  amount  of 
detail  has  been  accom- 
plished during  the  last  year 
in  the  matter  of  reorganiza- 
tion. On  July  1,  1913,  all  of 
the  allied  Holt  companies 
were  brought  into  the  parent  company.  The  jobbing  fea- 
ture of  the  business  was  eliminated  as  soon  as  possible 
thereafter,  and  the  entire  effort  devoted  to  building  up  the 
manufacture  and  sale  of  its  own  products.  The  Stockton 
plant  has  been  rearranged  on  a  more  efficient  basis  and 
several  departments  added,  to  cut  down  the  expenditures 
for  outside  work.  Organization  charts,  a  system  of  written 
standard-practice  instructions,  a  practical  cost  system  and 
other  common-sense  efficiency  features  have  been  installed. 
The  Company  has  enjoyed  a  steady  growth,  with  no 
critical  periods  of  depression  or  shrinkage  in  volume.  The 
surplus  has  risen  steadily  until  it  nearly  doubles  the  capi- 
tal stock.  Sales  have  shown  a  gain  each  year,  and  sales 
to  the  present  date  promise  that  the  volume  in  1914  will 
much  more  than  equal  that  for  last  year,  in  spite  of  the 
elimination  of  a  half-million-dollar  jobbing  business  in 
hardware  and  kindred  lines.  The  annual  statement  as  of 
December  31,  1913,  shows  an  extremely  favorable  situation, 
with  nothing  credited  to  good-will.  The  foundations  of  the 
business  were  well  laid,  and  practically  continuous  man- 
agement during  its  entire  history  has  made  this  out-of-the- 
way  concern  one  of  the  world's  leaders. 


DEUTSCHE  BANK 

Registered  in  Berlin  as  a  Limited  Company  under  Prussian  Law,  recognized  in  England  by  the  Declaration 
exchanged  between  the  British  and  German  governments,  March  27,  1874,  and  registered  in  London  under  the 
Companies  (Consolidation)  Act,  1908. 


Capital  Fully  Paid 
Reserves  about 


250,000,000  Marks 
170,000,000 


Head  Office,  BERLIN 

London  Bankers: 

BANK  OF  ENGLAND.   NATIONAL  PROVINCIAL  BANK  OF  ENGLAND,  LTD. 
UNION  OF  LONDON  AND  SMITHS  BANK,  LTQ. 


Branches 

Aix  la  Chapelle,  Augsburg,  Barmen,  Berncastel-Cues,  Bielefeld,  Bocholt,  Bonn,  Bremen,  Brussels,  Chemnitz, 
Coblenz,  Cologne,  Cologne-Mulheim,  Constantinople,  Crefeld,  Cronenberg,  Darmstadt,  Dresden,  Dusseldorf, 
Elberfeld,  Frankfort  oM.,  M.-Gladbach,  Hagen,  Hamburg,  Hamm,  Hanau,  Leipsic,  Meissen,  Munich, 
Neheim,  Neuss,  Nuremberg,  Offenbach  o  M.,  Paderborn,  Remscheid,  Rheydt,  Saarbrucken,  Solingen,  Treves, 
Wiesbaden.  __^^^___^_^^— 

London  Agency 

4  George  Yard,  Lombard  Street,  E.  C. 
The  London  Agency  collects  Bills  and  grants  Drafts  payable  on  the  Continent  and  elsewhere,  acts  as 
London  Representative  of  the  Banco  Aleman  Transatlantico  (Deutsche  Ueberseeische  Bank),  Berlin; 
Buenos  Aires,  Bahi  Blanca,  Cordoba,  Mendoza,  Rosario  de  Santa  Fe  and  Tucuman  (Argentina);  La  Paz  and 
Oruro  (Bolivia);  Antofagasta,  Arica,  Concepcion,  Iquique,  Osorno.  Santiago  de  Chile,  Temuco,  Valdivia  and 
Valparaiso  (Chili),  Arequipa,  Callao,  Lima  and  Trujillo  (Peru);  Montevideo  (Uraguay);  Barcelona  and  Madrid 
(Spain);  and  Banco  Allemao  Transatlantico,  Petropolis,  Rio  de  Janeiro,  Santos  and  Sao  Paulo;  Deutsch- 
Asiatische  Bank,  Berlin,  Calcutta,  Canton,  Hamburg,  Hankow,  Hongkong,  Kobe,  Pekin,  Shanghai,  Singapore, 
Tientsin,  Tsinanfu,  Tsingtau,  and  Yokohama;  and  is  prepared  to  transact  Foreign  Banking  business  of  every 
description  on  terms  to  be  ascertained  on  application  at  its  office. 


BANCA  COMMERCIALE  ITAUANA 

Head  Olllce,  MILAN 

1,  OLD  BROAD  STREET,  LONDON,  E.C. 

Manager-S.  J.  BIEBER.      Deputy  Manager-L.  LICHTENSTADTER 


Paid  up 

Capital 

£6,240,000 

Reserve 

Funds 

£2,328,000 

BRANCHES 

Acireale. 

Lecco. 

Salerno. 

Alessandria. 

Leghorn. 

Saluzzo. 

Ancona. 

Lucca. 

San    Pier    D'Arena. 

Ban. 

Messina. 

Sant'   Agnello   di 

Bergamo. 
Biella. 

Mestre. 

Sorrento 

Milan. 

Sassari. 

Bologna. 

Naples. 

Savona. 

Brescia. 

Novara. 

Schio. 

Busto   Arsizio. 

Oneglta. 

Sestri    Ponente. 

Cagliari. 
Caftanissetta. 

Padua. 

Siracusa. 

Palermo. 

Termini    Imerese. 

Carrara. 

Parma. 

Trapani. 

Catania. 

Perugia. 

Treviso. 

Como. 

Pescara. 

Turin. 

Cremona. 

Piacenza. 

Udine. 

Ferrara. 

Pisa. 

Venice. 

Florence. 

Prato. 

Verona. 

Genoa. 

Reggio    Emilia. 

Vicenza. 

Lecce. 

Rome. 

Agents  in  London  for  Banque  Franchise  et  Ital- 
ienne  pour  1'Amerique  du  Sud:  Buenos  Aires,  Rio 
de  Janeiro,  San  Paulo.  Santos,  Curityba,  Ribeirao 
Preto,  San  Carlos,  Botucatu  Espirito  Santa  da  Pin- 
hal,  Mococa,  S.  Jose  de  Rio  Pardo,  Jahu,  Ponta 
Grossa,  and  Societa  Commerciale  d'Oriente,  Ant- 
ivari,  Bari,  Constantinople,  Durazzo,  Podgoritza, 
Scutari,  Tripoli,  Venice. 


BROWN  BROTHERS  &  CO. 

59  Wall  Street,  New  York. 

4th  &  Chestnut  Sts.,  Philadelphia.     :    60  State  St.,  Boston. 

Members  of  the  New  York,  Philadelphia, 
Boston  and  Baltimore  Stock  Exchanges. 

PRIVATE  WIRE   CONNECTIONS  BETWEEN  ALL  OFFICES, 
ALSO  WITH 

ALEX.  BROWN  &  SONS,  BALTIMORE,  MD. 


BILLS  OF  EXCHANGE  BOUGHT  &  SOLD 


INVESTMENT  SECURITIES 

Lists  furnished  upon  request.  Orders  executed  on  Commission. 

Free  statistical  service.    Coupons  and  dividends  collected. 

Securities  received  for  safe  keeping. 


Commercial  Letters  of  Credit  and  Travellers'  Letters 

of  Credit  issued,  available  in  all  parts  of  the  world, 

Travellers'  Cheques  issued.    Collections  made  on  all 

points.      Telegraphic  Transfers  of  Money. 

Deposit  Accounts  of  Banks,  Bankers,  Firms, 
and  Individuals  received  on  favourable  terms. 

Certificates  of  Deposit  issued  payable  on  demand  or 
at  a  staled  period. 


Brown,  Shipley  &  Co. 

FOUNDERS  COURT,  LOTHBURY,  E.C. 

SPECIAL  OFFICE  FOR  TRAVELLERS,  123  PALL  MALL,  S.W. 

LONDON 


175 


Publications  of  The  Economist 


CHICAGO,  U.  S.  A. 


THE   ECONOMIST. 

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omist size,  designed  to  describe  all  corpora- 
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furnish  a  memorandum  of  every  event  in 
the  world  which  has  an  important  bearing 
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108  South  La  Salle  Street,  Chicago,  U.  S.  A. 


176 


The  Commercial  and  Financial 

Chronicle 


HpHE  CHRONICLE   is  a   weekly   newspaper  of  80  to  96  pages,  published   for 
the  earliest  mail  every  Saturday  morning,  with  latest  news  by  telegraph  and 
cable,   from    its   own   correspondents,    relating  to   the   various   matters   within   its 
scope. 

Some  Facts  Worth  Knowing 

1.  The  Chronicle  has  the  largest  circulation  among  Investors  of  any  Financial  and 
Commercial   Journal    in    the   United    States. 

2.  It  has  the  largest  list  of  subscribers  of  any  similar  Journal  among  (1)  Banks  and 
other  Financial  Institutions;  (2)  Railroad  Officials,  Managers  and  Agents;  (3)  Bankers, 
Brokers  and  the  larger  Merchants;  (4)  Cotton  Commission  Houses  and  Producers,  it  be- 
ing the  recognized  authority  on  cotton  the  world  over;  (S)  Dealers  and  Investors  in  Mu- 
nicipal Securities,  and  State,  City  and  County  Officials;  and  (6)  Investors  and  moneyed 
classes  generally. 

3.  It  has  much  the  largest  circulation  among  investors  and  financial  institutions  in 
Europe  of  any  American  Journal. 

4.  It  has  likewise  a  substantial  and  representative  list  of  subscribers  in  every  important 
Financial   or   Commercial   centre   not   only   of  Europe  but  of  the  World. 

A  unique  feature   of  the   Chronicle  is   its 

Six  Extra  Supplements 

1.  The  RAILWAY  AND  INDUSTRIAL  SECTION'.  192  pages,  issued  three  times  a  year,  containing 
the  latest  available  information  respecting  the  property,  stocks,  bonds,  earnings,  dividends,  interest  payments, 
&c,  of  every  Steam  Railroad  of  importance  and  of  the  leading  Industrial  Corporations,  Kc,  in  the  United 
States, 

2.  The  RAILWAY  EARNINGS  SECTION,  issued  monthly,  containing  the  sworn  returns  of  earnings 
and  expenses  filed  each  month  with  the  Interstate  Commerce  Commission.  Each  new  number  contains  an 
additional  month's  figures. 

3.  The  STATE  AND  CITY  SECTION,  of  208  pages,  issued  semi-annually,  in  May  and  November,  con- 
taining, among  other  things,  about  5.000  detailed  reports  of  the  indebtedness  and  general  financial  condition 
of  States,  Counties  and  Cities;  also  digests  of  laws  relating   to   investments,    by    Savings    Banks,    &c. 

4.  The  ELECTRICAL  RAILWAY  SECTION,  of  148  pages,  issued  three  times  a  year,  containing  a  com- 
plcte  description  of  the  Electric  and  Street  Railways  throughout  the  country,  their  stock,  dividends,  bonded 
indebtedness,  earnings,  &c,  &c. 

3.  The  HANK  AND  QUOTATION  SECTION,  a  monthly  publication  of  64  pages,  issued  the  first  week 
in  each  month,  giving  the  most  complete  and  comprehensive  tables  of  Quotations  ever  issued,  embracing 
prices  of  Railroad  Bonds  and  Stocks,  Bank  and  Trust  Company  Stocks,  Municipal  Securities,  Street  Railway 
Stocks   and    Bonds  and    Miscellaneous   Securities. 

6.  The  BANKERS'  CONVENTION  SECTION,  issued  yearly,  giving  the  detailed  proceedings  of  the 
annual  convention  of  the  American  Bankers'  Association — not  alone  the  general  Convention  but  also  the 
Trust  Company   Section  and   the  Savings   Bank   Section. 

A  FURTHER  NOVEL  FEATURE  is  that  the  publishers  of  the  Chronicle  mo*  no  charge  for  any  of  these 
supplements,  but  give  them  all  to  the  Chronicle  subscribers. 

INVESTORS  wishing  to  keep  informed  with  reference  to  their  investments, 
BUYERS  AND  SELLERS  of  Bonds  and  Stocks  of  Steam  Railroads. 
BUYERS  AND  SELLERS  of  Bonds  and  Stocks  of  Street  Railways, 
BUYERS  AND   SELLERS  of   Bonds   of   States,  Cities,  Towns.  8c, 
RAILROAD    Executive   and   Operating   Officials  of  every  description, 
BANKS,    TRUST    COMPANIES    and    financial  institutions  of  all  kinds, 

EACH  and  all  need  the  CHRONICLE  and  its  added  SECTIONS. 

rFor  the  United   States  and  Mexico,   including  all  the   Sections $10.00 

TERMS:      -(Canada,    including   all    Sections 11,50 

I  For  all  other  foreign   countries,   including  postage  and   all  Sections 13.00 


WILLIAM  B.  DANA  COMPANY,  Publishers 

Chronicle  Building,  Front,  Pine  and  Depeyster  Streets,       .'.       NEW  YORK 


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THIS  BOOK  IS  DUE  ON  THE  LAST  DATE 
STAMPED  BELOW 


AN     INITIAL    FINE      OF     25     CENTS 

WILL  BE  ASSESSED  FOR  FAILURE  TO  RETURN 
THIS  BOOK  ON  THE  DATE  DUE.  THE  PENALTY 
WILL  INCREASE  TO  50  CENTS  ON  THE  FOURTH 
DAY  AND  TO  $1.00  ON  THE  SEVENTH  DAY 
OVERDUE. 


OCT     V*  1932 

N0V  16  1938 

***** 


73 


UBRAKr 

JAN  8  ' 

> 

•J  UN  13  1962 


LD  21-60m-8,-82 


